The Hindu Business Line : Investments in mutual funds still low: Assocham

A study by the Associated Chambers of Commerce and Industry of India (Assocham) on `Emerging trends of the Indian and International Mutual Fund Industry,' has revealed that deposits of Indian households in mutual funds continues to be only six per cent as against 50 per cent and 17 per cent of household investments in the US and the UK respectively.

It is estimated that there are about 180 million households in India, of which a little over 10 million have invested in mutual funds. In urban areas, 13.7 per cent of households have mutual funds while in rural areas the percentage is just 3.8 per cent. The Indian mutual fund industry had assets under management that amounted to $33 billion by end of May 2004 in comparison to $32 trillion managed worldwide, the chamber said.

However, Assocham contends that with growing awareness, the present low yield of Indian mutual fund industry will grow in the next nine to 10 years and contribute a substantial percentage to the country's gross domestic product.

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