Page 54 - Banking Finance July 2025

ARTICLE

behavioral finance to nudge positive investment hab- Conclusion: Forging an Empowered Fi-
its, building trust through transparent communication
and community outreach, and embedding financial lit- nancial Future
eracy from an early age are key levers. India's asset management sector, led by its burgeoning
mutual fund industry, has matured significantly, becoming
7. Strengthening Last-Mile Delivery: Expanding reach
a vital conduit for channeling savings into productive invest-
through a 'phygital' approach - combining digital tools
ments and empowering citizens financially. Fueled by a po-
with physical touch points. This involves empowering
tent mix of economic growth, demographic shifts, techno-
local intermediaries and leveraging existing community
logical advancements, regulatory foresight, and increasing
networks (like post offices or CSCs) for guidance and on
investor sophistication, the industry has achieved remark-
boarding.
able scale, with AUM poised to cross the Rs. 100 lakh crore
8. Fostering Ecosystem Synergy: It is vital that the ef- threshold. Domestic investors, particularly through the dis-
forts of regulators, AMCs, distributors, and technology ciplined route of SIPs, are now a formidable force shaping
providers should be aligned towards common goals like market dynamics.
standardized processes, localized awareness cam-
paigns, and investor-centric policy advocacy. However, the mission extends beyond mere asset accumu-

9. Evolving Regulatory Landscape: Continued collabora- lation. The industry faces the ongoing tasks of deepening
tion with SEBI is essential to adapt regulations that penetration into underserved segments, simplifying com-
support innovation while safeguarding investors. Recent plexities, navigating market uncertainties responsibly, and
regulatory actions focus on faster fund deployment from addressing emerging concerns like climate risk integration.
New Fund Offers (NFOs), mandatory employee co-in- The ultimate goal is to transition from providing access to
vestment in schemes, disclosure of stress test results, fostering genuine financial wellbeing across the nation.
and facilitating passive investing through frameworks
like MF Lite. Addressing gaps in climate risk disclosure The path towards 2047 requires unwavering commitment
and management is also becoming critical. to investor-centricity, innovation tailored to India's unique
context, and collaborative efforts across the entire ecosys-
10. Leveraging Technology: Fully harnessing the potential
tem. By focusing on simplicity, relevance, inclusivity, and
of AI, big data, cloud computing, and India's digital
leveraging the country's digital prowess, the industry can
public infrastructure (like UPI, ONDC, Account
overcome existing challenges. The vision is clear: to provide
Aggregator) will be key to enhancing personalization,
financial security and prosperity for every Indian household,
operational efficiency, risk management, and overall
thereby contributing significantly to the nation's broader
reach.
economic aspirations and setting a global example for in-
clusive wealth creation.
"Views and Opinions expressed in the article are mine and
not of the Bank''

References:
1) https://www.amfiindia.com/visionpaper_2025.
2) https://www.amfiindia.com/AMFIFactbook2024
3) https://www.sebi.org
4) https://www.amfiindia.com
5) https://www.crisil.com
6) https://www.economictimes.indiatimes.com
7) https://cafemutual.com/news/industry

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