Managed assets to rise 6-fold by 2015

Global consulting firm The Boston Consulting Group (BCG) expects the total assets managed by all funds in the country "� mutual funds, international funds, private banking, including portfolio management services, unit-linked insurance and pension funds "� to grow more than six-fold to $1,300 billion by 2015 from the current $170 billion.

In its latest report, 'Playing the long game: Global asset management 2006, the BCG also says global asset managers, despite overall positive trends in the value of the funds they manage, must take forceful initiatives to improve the integrity of their businesses if they hope to remain competitive, as industry dynamics shift in step with demographic patterns.

The new report offers a detailed analysis of the market for retirement assets and outlines specific actions that asset managers can take if they seek both to raise profitability and achieve a leadership position in the industry.

The BCG feels the opportunity for various fund categories to invest in India will grow exponentially. In fact, managed assets, excluding pensions, are expected to grow at least 10 times over the next 10 years.

"The potential of the Indian market is attracting many new entrants and this is likely to continue over the next five years," said Alpesh Shah, director, BCG.

For domestic asset managers to do well, the BCG has identified the five commandments for success.

"India is a very attractive opportunity and ultimately the players that get their act together on these five commandments in addition to the table stakes of solid investment performance will be the biggest winners," he said.