It is quite imperative that the industry now map its course onto the next level of growth and consequently take its own steps closer towards financial inclusion.

The global meltdown had various repercussions, ranging from a galloping inflation and slowdown in industrial production to an uncertain political environment, leading to the equity and debt markets being weathered down. The volatility in markets and the uncertainties in global and local political environments led to a dent in the capital market performance, challenging fund houses to deliver consistently, irrespective of the unfolding adverse situations. The mutual fund industry was actually able to buck the trend and show an increase in assets under management. The steady growth of the Indian mutual fund industry bears witness to the fact that mutual fund products have gained popularity in the Indian markets. Even amidst the backdrop of the economic crisis, the industry has proved its resilience, and is well on its way to further recovery.

Despite huge redemption pressures, as an aftermath of the crisis, the performance of various schemes held fort and managed to sustain a good streak of returns. Assets under management traced a growth of 28% over the last four years. Had the mutual funds pressed the panic button due to redemption pressures, the impact of a weak stock market would have been severe. On a positive note, the financial turmoil has helped highlight the benefits of investing in mutual funds vis-à-vis directly investing in stocks.

The Analyst Magazine, Indian Mutual Fund Industry, Financial Inclusion, Debt Markets, Equity Markets, Economic Crisis, Mutual Fund Products, Financial Turmoil, Indian Markets, Investment Schemes, Financial Markets, Market Borrowing Programs, Business Models, Banking System.