Guoabong Stock：Indian common fund realization of a milestone spanning retail investment boom promotes the growth of the scale of asset management

In the past year, the Indian common fund industry has achieved several milestone leaps: the number of asset management scale has achieved a record growth, and the new investment account exceeds 20 million, and Bellaide, the world's largest fund management company, plans to return.

The glorious record of the Indian common fund industry has benefited from the strong demand for investors in financial income. In this country with the largest number of people in the world, young people with smartphones have entered the stock market investment.Data from Chenxing Company showed that the scale of fund assets increased by 19%in the first 11 months of 2023, winning other major markets such as the United States, Japan and India.

A retail investment boom during the epidemic period is unexpected. At present, this momentum is still maintained. India's $ 41 trillion stock market will continue to grow. The benchmark stock index will record an annual increase in the eighth consecutive year.The proportion of household financial assets attracted by the common fund will increase.As of March this year, they accounted for less than 9%, and bank deposits accounted for about 45%.

"This year is a turning point, a major qualitative change," the independent investment research company Value Research LTD.Dhirendra Kumar, the person in charge of New Delhi.The company has been providing consultants for common fund investors for 30 years."In a sense, we have seen signs of investing in the whole peopleGuoabong Stock. Anyone who does not participate will feel that we have missed the opportunity."

The asset -scale climbing is mainly due to stock funds.With the improvement of the overall financial knowledge and income level of Indian nationals, people's investment goals have gradually shifted from physical assets such as real estate, gold, and bank deposits.Restrictions and unemployment problems have caused millions of people to stay at home.The excellent return on investment in the stock market also helped attract new investors to enter the market.

Under these factors, in November, the Indian local stock fund in November for the 33rd consecutive month of capital flow, and the monthly investment plan became the most popular product of retail investors.According to data from Bloomberg industry, since the outbreak of the epidemic, the compound annual growth rate of funds flowing through such plans has exceeded 25%, and it has attracted a record of $ 2.1 billion in November.

AMARJEET SINGH of the Indian Securities Exchange Commission said at a meeting in Mumbai last month that the scale of asset management of Indian funds is equivalent to 16%of the country's economic scale, which has doubled in the past ten years.

However, he pointed out that in this country with a population of more than 1.4 billion, the common fund investors have only about 40 million, highlighting the growth potential that can be excavated in the future.

Although the industry has also experienced a period of surge in retail purchase in the previous rounds of bull markets, it is worth noting that this capital flow has been continuing and sticky.Indore Investment

The stable domestic capital flow has also helped protect the market from the influence of foreign capital outflows. Taking 2022 as an example, under the influence of the Fed's tightening policy, the global fund withdrew the record of US $ 17 billion, but the Indian stock market still rose in that yearEssenceHowever, the unfavorable side is that the continued rise in the stock market means that investors' determination has not been tested.If the global or local shocks cause the Indian market to be chaotic, whether their interest in stock investment is still so strong, it needs to be observed.

According to data from the Indian Cohabitation Fund Association, the industry's average management assets increased by 8 trillion rupees (US $ 96 billion) 11 months before 2023 to 48.75 trillion rupees.The industry agency said that this increase will be the largest annual increase since the record.

The vast prospects of this potential market are attracting new investors.Zerodha Broking LTD.And NextBillion Technology PVT.The support fund companies launched the first batch of products this year.BAJAJ FINSERV Mutual Fund and Helios Mutual Fund supported by Singapore Fund Manager Samir Arora also appeared for the first time.

After the quit in 2018, Belle is currently returning to the Indian fund management market.The company agreed to set up a joint venture with the financial service subsidiary of Billionaire Mukesh Ambani Mukesh Ambani in July.

Source: financial industry