A Trillion and Indian Mutual Fund Industry
Lately the word trillion has come in conversations in India.
Indians are used to writing numbers in lakhs and crores. A lakh is a hundred thousand. A crore is hundred hundred thousand. In the west the numbers are written in sets of three zeros such as a thousand or a million. A trillion has 12 zeros.
A trillion rupees in Indian way of counting is Rs 1 Lakh Crore.
How big is this amount?
Let us put it in perspective by looking at Indian mutual find industry.
Each of the top 9 mutual fund houses, has assets under management (AUM) in excess of 1 trillion indian rupees.
Incidentally the top 10 mutual fund houses account for 80% of the AUM of the entire mutual fund industry.
The total AUM of all the mutual fund houses is 25 trillion Indian rupees in September 2019.
If I compare this number with Indian GDP, which was USD 2.6 trillion in 2017, it is less than 15%.
Worldwide the average ratio of AUM with GDP is 13.62%. The ratio of AUM with GDP for USA is 100% plus.
The future
Indian AUM of mutual funds is expected to grow to 100 trillion rupees by 2025. It is indeed a great news!
The future for the Indian mutual fund Industry is definitely bright.
2 comments:
Nicely explained in layman's language. You could add what does GDP mean and what this ratio signifies
Loved the way u explained the need for understanding lakhs, millions and billions. Crisp and concise. Indeed Mutual Fund Sahi Hai !!!
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