India Asset Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Asset Class (Equity, Debt, Liquid, and others) by Source of funds (retail, Institutions, HNI, Corporates).

Market Snapshot

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Study Period: 2016 - 2026
Base Year: 2020
CAGR: 14 %

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Market Overview

India Asset Management Market is estimated to grow at a CAGR of approximately 14 % during the forecast period. India’s asset management companies (AMCs) own (AUM) worth INR24.46 trillion, out of the total industry assets, around 80% is owned by the top 10 AMCs in the market. Assets managed by the Indian mutual fund industry have grown from INR23.59 trillion in November 2018 to INR26.94 trillion in November 2019 (based upon the average assets per month). That represents a 14.21% growth in assets over November 2018. Rising AUM and regulatory effort to lower cost for customers is seen bringing down yield (Total Expense Ratio) on AUM for the industry in the long run. However, growth in AUM with a favorable mix and continued focus on improving operational efficiency makes a case in favor of sustainable growth in earnings. The past few years have witnessed a significant evolution in the asset management industry in India, Individual investors have grown at a significant pace and now command nearly 58% of the AUM. Equity as an asset class has grown in prominence, now accounting for nearly 45% of the AUM as against 23% five years ago. A large share of this shift has been driven by increasing penetration across B15 cities that now account for nearly a quarter of the AUM.

Scope of the Report

This report aims to provide a detailed analysis of the India Asset management Market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the India Asset management Market.

By Asset Class
Equity
Debt
Liquid
Others
By Source of funds
Retail
Institutional
HNI
Corporates

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Key Market Trends

Increase in SIP’s (systematic investment plan) accounts:

Systematic investment plans (SIPs) have made retail investing more sustainable, shielding investors from market volatility. On an average, 9.55 lacs SIP accounts each month during the FY 2019-20, with an average SIP size of about INR 2,800 per SIP account. Mutual Fund SIPs accounts stood at 2.94 crores and the total amount collected through SIP in November 2019 was INR 8,273 crore. SIP continued to be the preferred route for retail investors to invest in a mutual funds as it helps them reduce market timing risk, The SIP installment amount could be as small as INR 500 per month. SIP is like a recurring deposit where you deposit a fixed amount every month. SIP is a very convenient method of investing in mutual funds through standing instructions to debit your bank account every month, without the hassle of having to write out a cheque each time. SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and in investing in a disciplined manner without worrying about market volatility and timing the market.

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Under Penetration of Mutual Fund offers growth potential:

India lags most major nations of the world in terms of AUM of mutual funds as a percentage of gross domestic product (GDP) at just 11% versus the world average of about 62%. Relatively low penetration provides a large potential and opportunity for strong growth ahead. India provides huge untapped potential and opportunity for Mutual Funds to be a great vehicle to funnel household savings into productive investments. Industry saw exponential growth in the retail base with industry adding over 4 crore new accounts and assets under management more than doubling from around INR11 trillion to over INR25 trillion. Another notable trend has been the growing investor participation from tier II and tier III towns which now contributes about 23% of industry’s individual investor assets.

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Competitive Landscape

The report covers the major players operating in the India Asset management Market. The market studied presents opportunities for growth during the forecast period, which is expected to further drive the market competition. India Asset Management market is consolidated as top players hold the major share in the market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Asset Class

      1. 5.1.1 Equity

      2. 5.1.2 Debt

      3. 5.1.3 Liquid

      4. 5.1.4 Others

    2. 5.2 By Source of funds

      1. 5.2.1 Retail

      2. 5.2.2 Institutional

      3. 5.2.3 HNI

      4. 5.2.4 Corporates

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 HDFC AMC

      2. 6.3.2 ICICI Pru AMC

      3. 6.3.3 Aditya Birla Sunlife

      4. 6.3.4 SBI Fund Management

      5. 6.3.5 Reliance Nippon

      6. 6.3.6 Kotak AMC

      7. 6.3.7 UTI AMC

      8. 6.3.8 Franklin Templeton

      9. 6.3.9 Axis AMC

      10. 6.3.10 DSP Investment Manager

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The India Asset Management Market market is studied from 2016 - 2026.

The India Asset Management Market is growing at a CAGR of 14% over the next 5 years.

HDFC AMC, ICICI Pru AMC, Aditya Birla Sunlife, SBI Fund Management, Reliance Nippon are the major companies operating in India Asset Management Market.

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