ITI Mutual Fund projects to reach Rs 1 trn AUM in next five years

ITI Mutual Fund aims to reach Rs 1 trillion AUM in the next five years, as an increasing number of people are choosing mutual funds through systematic investment plans.

ITI MF's asset under management (AUM) increased nearly 2.4 times to Rs 8,791 crore in July 2024 from Rs 3,698 crore in March 2023.

Mayukh Datta, chief business officer of the AMC, said the mutual fund industry has about 4.80 crore unique PAN investors. It currently has 9.34 crore live SIP accounts with Rs 13.09 trillion in the AUM.

He further said that as of March 31, 2024, there were 74.67 crore PAN holders in India, and 60.5 crore PAN were Aadhaar-linked.

"So, we are yet to have 10 per cent of the investible population, i.e. PAN card holders, yet to come to the mutual funds universe. There is enough of runway for new investors to enter the mutual fund industry," Datta said in an interaction with PTI.

He further said India remains in a golden spot on the world map, with expected growth outpacing most global economies, presenting strong opportunities for the mutual funds industry.

"India's economic growth trajectory offers a unique opportunity for mutual funds. With the country's anticipated growth rate surpassing many global economies, ITI AMC is poised to experience significant expansion. We aim to capitalise on this favourable environment. We are aiming to reach an AUM of Rs 1 trillion within the next five years," Datta said.

On the capital market, he said index valuations are led by individual valuations of stocks in that index and the stock's weightage.

"So, index valuations are guiding factors and not limiting factors. Fund managers in active schemes are not buying the full index and within market cap funds like large, mid and small-cap funds, they have the option to invest in the other market caps in the schemes, depending on their views and perceived growth potential," he said.

Datta said that while India is at the 5th rank in global GDP ranking, yet many of the country's top businesses and firms are quite behind in the global ranking of companies in the same industry.

The top 250 companies of India provide an attractive proposition for investors to invest in leading companies which could transition to the global scale, he added.

Started in 2019, ITI AMC is managing 17 schemes as of the end of July 2024 with a total AUM of Rs 8,791 crore. The equity AUM is Rs 8,303 crore as of the end of July 2024.