The asset under management (AUM) of the domestic mutual fund industry is likely to double at Rs. 17.6 lakh crore by 2015 on account of favourable economic climate, a study by Evalueserve and Assocham said.

“A favourable economic climate, increasing participation of retail customers, especially in tier II and tier III cities and rural areas, along with a gradual shift in investors’ preference towards mutual funds will drive the projected growth,” it said.

The average AUM of the country’s mutual fund industry was Rs. 7.78 lakh crore at the end of December 2009.

“ would reach close to Rs 9 trillion by March 2010 as strong recovery has taken place during the period.

Thereafter, the growth in MF would continue in a sustained manner,” it said.

On the prospects, the study said growth momentum is expected to continue over the medium term.

“Indian MF industry is poised for a period of sustained growth and AUM are likely to reach about Rs. 17.6 trillion (lakh crore) by March 2015 because of strong fundamentals in place and an active market regulator (SEBI) is there to protect investors interest,” the study said.

It further said that rural India could be an attractive market though effective penetration remains a key challenge.

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