Noting that the city has a huge economic base with tremendous potential for investment across both, equity and debt mutual fund (MF) products, he said “This is supported by the large aspirational class which wants to invest for growth and wealth creation. Across all segments of population in this important city, MFs are an important investment avenue. Hence, it is important to be present and expand our presence in this region. Relocation to a bigger branch showcases our commitment of a much larger and long-term relationship with Chennai.”

Chennai’s MF market has shown growth in the range of 13 to 14 per cent over the last five to 10 years. During this period, bank deposit growth rates have slowed slightly. As a result, MF investments to bank deposit ratio has moved up to 28% (Measurement of MF penetration) in 2022 for Chennai up from 21% in 2012.

Mutual fund distributors and national distributors together contribute one third of the total MF assets under management (AUM) in Chennai. The AUM constitutes higher level of equity and hybrid schemes which contribute approximately 50% of the city’s AUM. The fixed income schemes also have sizeable AUM with approximately 33% of the same, as per a release.

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