look news india
In April, when foreign mutual fund Invesco decided to sell 60 percent of its stake to Hinduja Group, no one was surprised, because most of the foreign mutual funds have not been able to achieve much growth in India. In comparison, domestic mutual funds have grown well and have an AUM of Rs. It has crossed the figure of Rs 50 lakh crore.
If we look at the top 10 funds of the country in terms of AUM, only two foreign funds are included in them, Nippon India and Mirae Asset. Even among the top 20 funds, the number of foreign funds is only 6. Currently the top 20 funds have a total of Rs. There is Rs 52 lakh crore AUM under management, of which the AUM of these six foreign funds is 20 per cent. Thus foreign funds in India cannot achieve the desired growth. Due to this, in the last decade many foreign funds like Goldman Sachs, Nomura, Fidelity etc. have closed their business in India. In fact, the country's first private mutual fund Kothari Pioneer was established by the American company Pioneer and Kothari Group through a joint venture and within ten years the fund was acquired by Franklin Templeton.
Explaining the reason for foreign funds not performing well, experts say that the investment horizon in India is very long. Moreover, foreign funds also lag behind in terms of disbursement capacity. Moreover, like local funds, they too lag behind in offering tailored products suitable for Indian investors. Generally foreign funds base their policy on global norms and use local experts. India is actually a country of savers and not investors and such people need income from investments. This type of product is not popular globally. Most other local funds are owned by local banks. Therefore the distribution network of these funds is strong.