Penetrating deeper into smaller cities to expand their business has increased staff strength, said fund managers. But in FY20, their pace of hiring is expected to be slower.
ICICI Prudential Mutual Fund has increased staff by 62 per cent to 2,100 in FY2019, while headcount at HDFC AMC rose 25 per cent to 1,600, according to a data compiled by VitoAltor, a premier executive search firm. Reliance Nippon Life Mutual Fund staff strength rose 26 per cent to 1,700 in FY 2019 while SBI Mutual Fund headcounts jumped 31 per cent to 1700 in the period.
The mutual fund industry has given an increase of about 8 per cent to 12 per cent as internal increment in FY2019 along with 20-30 per cent market liked increment apart from the bonus, according to VitoAltor.
“We have added over 120 locations post IPO and currently we are present across 300 locations pan India. As we penetrate deeper into India to expand the market and have new to industry mutual fund customers, we have added workforce to facilitate and support our growth,” said Sundeep Sikka, CEO, Reliance Nippon Life Asset Management.
“Still mutual fund Industry has below 2 crore unique investors as compared to the India population of over 130 crore; a huge headroom for growth to reach each and every household in India for participating in the wealth creation journey.”
The mutual fund industry is eyeing a four-fold rise in assets under management (AUM) to Rs 100 lakh crore from Rs 25 lakh crore and increase in investor base to 10 crore from current two crore over the next decade, according to a recent AMFI-BCG vision document. To achieve this vision, the industry will need mammoth manpower, said fund managers.
“With a pan India presence across 300 locations, we are committed to deepening mutual fund penetration in the country and we have been hiring staff even from the campus every year” said A Balasubramanian, CEO, Aditya Birla Sun Life AMC. “We have been adding branches every year and my goal is to be present in all the 543 Lok Sabha constituencies to enhance the appeal of mutual funds across a wider set of investors.”
Growing investor interest in mutual funds has led to massive increase in addition of folios in FY19. Over 1.11 crore new folios had been added in the FY19, taking the total to an all-time high of 8.24 crore. Annual contribution through systematic investment plan (SIP) witnessed increase in contribution by individual investors from Rs 44,000 crore in FY17 to nearly Rs 93,000 crore in FY19.
- Dearth in office-space drives Hanoi rents skyward: report
- Fed unveils bold, open-ended steps to aid economy
- Corporate issuance drives growth in emerging E.Asian bond markets
- US Fed chief vows aggressive steps as recovery slows
- Retail loan profits drive bank stocks
- China's factories grow at fastest pace in over 5 years as prices surge
- Son La Stepping Up Administrative Reform and Business Support
- Divided US Congress approves $100 bln Iraq war funds
- Vietnam’s booming economy drives luxury home market
- Deposit Insurance of Vietnam: Steps forward for depositors
- Foreign retailers drive the rise of convenience stores in Vietnam
- Trump's son-in-law Kushner to become senior White House adviser
- Vinh Long in need of ODA funds
- Fatherland Front drives efforts to help the poor
- PM sets growth paces for sectors and agencies
- Uber hires Dara Khosrowshahi as chief
- US House pushes new war funds bill Bush would veto
- European Council delighted with pace of Viet Nam trade relations
- Stepping up Transport Development Cooperation
- The deserted house
Mutual fund houses step up hiring to keep pace with expansion drive have 595 words, post on economictimes.indiatimes.com at September 9, 2019. This is cached page on Talk Vietnam. If you want remove this page, please contact us.