The Indian Chamber of Commerce (ICC) hosted its 16th mutual fund summit, focusing on ‘Vikshit Bharat 2047’, on 30 November, thereby transitioning from financial inclusion to financial well-being and navigating exponential changes through expert insights.

Commenting on the occasion, Atanu Sen, chairman, ICC National Expert Committee, said, “India’s 2047 vision focuses on universal financial inclusion to foster economic growth and nation-building. Despite innovations like UPI enhancing accessibility, only 47 million of 750 million PAN holders invest in mutual funds, reflecting a 3.2 per cent penetration rate. The sector’s growth potential is significant, driven by rising financial literacy and fintech adoption.”

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Explaining the growth opportunities and challenges in India’s mutual fund ecosystem, Ananth Narayan Gopalakrishnan, member, Securities and Exchange Board of India, said, “The mutual fund ecosystem has made extraordinary progress over the years, marked by a surge in unique investors from 2 crores in 2019 to over 5.1 crores today and Assets Under Management (AUM) skyrocketing from ₹23 lakh crores to ₹67 lakh crores. This incredible growth brings with it a responsibility to preserve the ecosystem. Nonetheless, mutual funds are inherently tied to market risks. Despite recent market volatility, mutual funds continue to deliver robust returns close to 15 per cent CAGR over five years, with indices providing 10 to 12 per cent in FY24 despite fluctuations.”

He further added, “India’s mutual fund industry benefits from unparalleled access to data. Unlike global markets, where granular data is sparse, our exchanges and depositories can analyse investments down to the individual level. 93 per cent of ‘Futures and Options’ traders lose money, emphasising the importance of informed participation. With technology enabling near-instantaneous transfers, the shift to ‘T+0 settlement’ must be prioritised. Faster processes will instill confidence among investors and enhance the overall experience.”

Speaking on advancing financial inclusion and literacy in India, Venkat Nageswar Chalasani, the chief executive of the Association of Mutual Funds in India, said, “All indicators, including reports from global rating agencies and institutions like the World Bank, project India as a leading driver of growth. However, achieving the vision of becoming a developed nation by 2047 is not just the dream of our Prime Minister but a shared responsibility for all of us. To truly realise this vision, financial prosperity must reach every corner of the country. This brings us to the importance of financial literacy. While India boasts an overall literacy rate of 75 per cent, financial literacy lags significantly at just 27 per cent, as per NCFB surveys.”

Lastly, alluding to the nuances of financial literacy, Sashi Krishnan, former CEO of the NPS Trust and the director of the National Institute of Securities Market, said, “While 78 crore Indians have bank accounts with 52 crores under Jan Dhan Yojana and half owned by women, 20 per cent of these accounts remain inactive. True financial inclusion requires not just access but also literacy and fluency, helping individuals, especially in rural areas, make informed financial decisions and manage aspirations sustainably.”

The session was also graced by other eminent individuals, which included Joydeep K Roy, leader, India Financial Services Advisory; Abhishek Kabra, managing director, Samara Capital; Arun Laddha, co-chairman, ICC National Expert Committee and Sudhin Roy Chowdhury, former member, Insurance Regulatory and Development Authority of India.

SNS