Asset Management Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India Asset Management Market Analysis

The India Asset Management Market is about USD 865 billion in the current year and is expected to register a CAGR of 14% over the forecast period.

Despite the poor economic situation that began in 2020 because of the pandemic, the Indian investment market still managed to close the decade on a noteworthy record. Owing to Covid-19, there has been a swift transformation into a more technology-driven world, leading to soaring investments in various sectors, such as education technology, financial services, and life sciences, over the traditional sectors of private equity (PE)/venture capital (VC) investors such as infrastructure and real estate, among others.

In 2022, the AUM of the Indian mutual fund industry stood at INR 37.22 trillion (USD 449 billion). Although individual investors hold 55% of industry assets, institutional investors account for 45%. Corporates account for 95%, and the rest is divided between Indian and foreign institutions and banks. The net outflows under the FPI route are around INR 852 billion (USD 10.3 billion) as of 15 June 2022, out of which around INR 126 billion (USD 1.52 billion) outflows are in debt.

The government, in its capacity as an anchor investor, has established a collaborative investment platform, namely the National Investment and Infrastructure Fund, for international and Indian investors looking for investment opportunities in infrastructure and other high-growth sectors of the country, which includes a fund of funds program that has emerged as a significant domestic LP. Further, the Small Industries Development Bank of India has been investing in various AIFs to promote and accelerate the growth of start-ups and micro enterprises, as well as SMEs in India.

SEBI is increasing its supervision on AIFs given the pace of growth clocked by the industry, to ensure that AIFs are being properly managed and operated and that there is no mis-selling. There is also an annual PPM audit requirement, and all filings with SEBI for seeking approval of AIFs are now required to be done through a merchant banker.

India Asset Management Market Trends

This section covers the major market trends shaping the India Asset Management Market according to our research experts:

Increase in Private Equity/Venture Capital Investment Activities is Driving the Market

India Asset Management Industry Segmentation

Asset management is a systematic approach to the governance and realization of value from the things a group or entity is responsible for over its life cycle. It may apply both to tangible assets (physical objects such as buildings or equipment) and intangible assets (such as human capital, intellectual property, goodwill, or financial assets). The India Asset Management Market is segmented by Client Type (Retail, Pension Funds, Insurance Companies, Banks, and Others) and by Asset Class (Equity, Fixed Income, Cash/Money Management, Alternative Investment, and Others). The report offers market size and forecasts in value (USD billion) for all the above segments.