WB is an important player in MF sector with a significant share in industry assets

Kolkata, Aug 15: West Bengal is showing a significant growth in the mutual fund (MF) investments said RK Jha, MD & CEO, LIC Mutual Fund Asset Management (LICMF).

Major factors that drive the popularity of MFs are booming capital markets and popularity of SIPs as a medium of Investment for growing middle class especially the youngsters. Mutual Funds are getting increasingly popular among the youngsters mainly because they are transparent, professionally managed and efficiently regulated. More and more Investors are realising the potential of Mutual Funds and making it a part of their core investment portfolios.

Mr. Jha highlighted that Mutual fund offers schemes in various categories depending upon the investor Risk profile and Investment horizon, this gives an Investor to assess their financial goals and accordingly make investment decisions.

Investing in mutual fund schemes, through the systematic investment plans (SIPs), provides a convenient way for investors to participate with regular, manageable contributions. SIPs offer a structured approach to investing, catering to a range of financial needs. This method simplifies the investment process and can be a valuable option for many investors.

As per the Industry body AMFI, West Bengal has a significant share in Industry Asset under Management and features fifth in terms of the assets under management (AuM) composition, contributing 5.1% to the total industry AuM. Further, the state ranks 9th in terms of AuM per capita of Rs 32,041.

With growth of Industries in West Bengal, these numbers may further go up. In times to come, we expect the Mutual fund Industry to have a significant participation in terms of AUM from West Bengal.

The investment climate in West Bengal has been showing notable progress, contributing to positive trends in job growth. The state has been attracting substantial investments across various sectors including IT, healthcare, textiles, agriculture, and chemicals. Recent business summits have highlighted significant investment proposals, reflecting growing interest and potential in the region.

The state has also demonstrated improvements in areas such as ease of doing business, skill development, and support for micro, small, and medium enterprises (MSMEs). This positive shift is expected to encourage more individuals to explore investment opportunities, potentially increasing the number of new mutual fund investors in the near future.