Vishal Jain: India's mutual fund AUM is only 17% of its GDP
Vishal Jain · Zerodha’s Move Into A ₹68 Lakh Cr Industry | CEO Vishal Jain On Expanding India’s 8% Investor Base · Mar 7, 2025 · at 41:25
Vishal Jain, CEO of Zerodha Fund House, discusses the low penetration of mutual funds in India relative to its gross domestic product.
0:00 / 0:17exact quote · 17.8s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“What's the case with India in India? It's just 17%. At this point of time, we have an economy, which is approximately about four trillion or so, as I understand. And about eight hundred billion is the AUM that we manage is the entire mutual fund assets that we manage, right? As a, as an industry”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Vishal Jain
Vishal Jain: Real estate is primarily a consumption asset, not an investment
“Real estate fortunately or unfortunately for all of us becomes a very large part you know, of our portfolio, but it's more for consumption than I'd say for investment.”
Jain: India's EPFO allocates nearly 15% of its incremental corpus to ETFs
“EPFO is the employee provident fund where you know, whatever salary you know, gets our salary gets cut, goes to the EPFO for managing that organization, which is run by the government. Now puts in nearly about 15% of their incremental corpus into ETFs.”
Jain: Broad crisis events make index ETFs superior to sector picking
“One of the reasons why ETF became a kind of first port of call is when you have an event, something like a COVID that happens, you don't know which stock or sector is going to get affected is going to do well. You just buy the index”
Jain: India's target market for financial products is 400 to 500 million
“When you look at it, I mean, whatever number you look at, there are about 400 to 500 people 400 to five hundred million people who we believe you know, financial products can be introduced to.”
Vishal Jain: Vernacular AI will drive massive retail investor adoption in India
“I think one of the big changes, one of the things that is going to change the way you invest as an investor as you move ahead is going to be AI, right? The fact that you know, if AI, Is able to kind of converse or help you know, ask converse in say a vernacula…”
Jain: Low-cost mutual funds require proprietary, in-house technological infrastructure
“And for me to give investors the cost benefit until I don't build infrastructure behind it, which is cost effective, I won't be able to pass on those benefits to the end investor, right? And therefore we're building that tech backbone such that as we build sca…”