As India’s per capita income rises, there is a hugelydisproportionate increase in money available for discretionary consumption,saving and investments. Our jump from $1000 to $2000 per capital income hascreated a savings boom which has fuelled the MF industry’s grown from 10 to 40lakh crs – 4x growth due to 4x increase in amounts available with householdsbeyond essential consumption.
With our per capita income set to double in next 6 years,there is likely to be a 6 fold jump in amounts available with households fordiscretionary consumption, saving and investments. Not unreasonable to expect a6 fold growth in MF industry AuM (far beyond the 100 lakh crs that industry isprojecting by 2030).
How well are MFDs prepared to harness this 6 fold growth inAuM in next 6 years? Invest in your businesses proactively, invest intechnology, processes and people to make sure you capture this coming growthwave.
PGIM is preparing for this growth wave by significantlystrengthening its investment management capabilities. The firm now has 3 CIOs –in charge of mutual funds, PMS/alts and international respectively.
Ajit is confident that the performance hiccup that thefirm’s equity funds have faced in recent quarters will very soon get addressed.Big learning for his team from this episode is the need for more proactivecommunication during bad patches – something that he will institutionalizegoing forward.