AMFI @25: Generates direct employment of 2.25 lakh people

The Association of Mutual Funds in India, which completed 25 years of operations, has facilitated direct employment for over 2.25 lakh people and indirectly for lakhs of people working with AMCs, RTAs, custodians, intermediaries and other service providers.

The association of all the Asset Management Companies was incorporated in August 1995 when there were about 15 member AMCs and the industry body now has 44 members.

Nilesh Shah, Chairman, AMFI, said the capital markets have witnessed a marked shift in the last few years, largely owing to the mutual fund industry, which has been instrumental in channelising retail savings into the capital markets.

Big tax contributor

The steady shift in savings pattern in favour of equities through SIP (systematic investment plan) in mutual funds has resulted not only in a significant rise in the Indian equity ownership, but also acted as a strong counter balance to Foreign Institutional Investors, said Shah.

The mutual fund industry has been contributing about ₹6,500 crore per annum to the government kitty in the form of GST and through the Securities Transaction Tax, which is applicable on equity market transactions.

As compared to other savings and investments, Mutual Fund Industry, has very few tax advantages resulting in very miniscule revenue loss to the government.

NS Venkatesh, Chief Executive, AMFI said from largely an urban and institution focused industry, mutual funds now have over 15 per cent of the assets coming from beyond the top 30 cities and 52 per cent of assets coming from individual investors.

With just over two crore investors out of a population of 130 crore, the industry has a long way to go in the next 25 years, he said.