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Informist, Wednesday, Sept. 2, 2026

 

MUMBAI – Bajaj Asset Management Co. expects the mutual fund industry to clock more than 30% annualised growth in assets over the long term, driven by a structural shift in household savings towards capital markets, rising investor participation, and strong systematic investment plan flows.
 

The industry's assets under management are likely to cross INR 85 trillion this month, already well ahead of the pace needed to meet an earlier estimate of INR 100 trillion by 2030, Bajaj AMC management said Wednesday.
 

When the company launched its business in 2024, it had estimated that industry AUM could reach INR 130 trillion by 2030. "Chances are, even the 130 lakh crores (INR 130 trillion) might look like a very small number by the time we get to FY32," management said.
 

The share of household financial savings going into currency and bank deposits has fallen to 41% from 48% five years ago, with the seven-percentage-point shift moving towards mutual funds and equities, the AMC said.
 

India currently has around 60–65 million unique mutual fund investors, a number rising by roughly 10 million annually. SIP inflows of around INR 320 billion a month provide another source of growth.
 

Bajaj AMC said India's mutual fund AUM-to-GDP ratio of around 21% remains below that of several emerging and developed markets, leaving significant headroom for expansion.
 

The AMC sees India's economic, earnings, credit and sentiment cycles turning favourable.
 

The domestic economy remains resilient despite risks from elevated crude prices and geopolitical tensions, while credit growth is running at around 18–19%. Foreign portfolio investor flows, which had been significantly negative, are also showing signs of stabilisation, management said.
 

Corporate earnings are showing signs of a turnaround, with Nifty 50 earnings growth around 17–19% in the first quarter and Nifty 500 earnings growth roughly 20–22%, the AMC said.
 

Bajaj AMC said large-cap valuations have become reasonable after recent time and price corrections.
 

The AMC is currently focused on themes including semiconductors, aerospace and defence, robotics and physical artificial intelligence, data centres, quick commerce, contract research and manufacturing, power, renewable energy, battery storage and electric vehicles.
 

The investment team said every 2.5% shift in pharmaceutical research and manufacturing market share from China to India could represent an opportunity of around $1 billion.
 

Power remains a key long-term theme as India's transition towards renewable and distributed energy is expected to require a significant investment in generation, transmission and distribution.
 

The management cautioned that the rapid rise in direct investing and social-media-led advice could increase behavioural risks. Around 46% of new investors enter through direct channels without advice, while investors typically earn 2.5–5.0% less than the underlying fund returns because of behavioural mistakes, it said.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

 

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