LIC IPO May Become Biggest Stock In Indian Share Markets: Report

Mutual Funds in India: Indian Mutual fund industry is set to touch Rs 90 trillion by December 2030, strategist Christopher Wood said. 

New Delhi: Volatile share market is no let down for Indian investors. For the investors waiting eagerly for LIC IPO, strategist Christopher Wood said that the IPO has the potential to become the biggest share in the Indian share markets. According to a latest report by Mint, the Indian Mutual fund industry is set to touch Rs 90 trillion by December 2030.

The total assets under management (AUM) of the Indian mutual funds’ industry are around Rs 38 trillion at present. The report quoted Wood as saying that the industry will primarily be driven by Systematic Investment Plans (SIPs). In January 2022, the total SIP accounts rose to a scintillating record of 5 crore accounts, the report added.

According to Wood, Indian share markets have seen an outflow of foreign investments worth $5.7 billion and the market has quite ably absorbed the shock. This has been possible primarily due to growing domestic mutual funds.

Sensex To Touch 1,00,000

Wood also said that the benchmark index Sensex may touch 1,00,000 in the next five years. For this, the earning per share growth must be recorded at 15 per cent. Also, the monthly inflows in the SIP accounts rose by a whopping 44 per cent to Rs 115 billion.

The record also stated that the domestic retail holdings in Indian stock markets grew by 17.3 per cent at the end of 2021. To the interest of many, Wood stated that the ongoing volatility due to the tightening Federal Reserve stance will not impact Indian unicorns in the long run.