Specialized Investment Funds: The next investment frontier for an affluent India
Live MintIndia’s capital market participation has got a significant boost with the introduction of a new investment product category: Specialized Investment Funds. India's household financial assets are growing at a compound annual growth rate of ~12% per Reserve Bank of India estimates, with equities and mutual funds capturing a larger portfolio share. From FY20 to FY24, mutual fund assets under management grew ~24% CAGR, portfolio management services ~16%, and alternative investment funds commitments ~32%, reflecting robust growth across asset classes. Sponsors must demonstrate a robust financial track record, including positive net worth over five consecutive years, an average annual net profit exceeding ₹5 crore, and capitalization of at least ₹75 crore for the asset management company.