Domestic investors, not foreign institutional investors, will shape India's future: Piyush Goyal
FinTech BizNews Service
Mumbai, March 1, 2025: The mutual fund industry has played a significant role in India's growth story by promoting financial literacy and bringing innovative financial concepts to the industry and investors, asserted Union Minister for Commerce and Industry Piyush Goyal while speaking as the chief guest at the Association of Mutual Funds in India (AMFI) Mutual Fund Summit 2025 in Mumbai on Saturday.
The minister praised domestic investors for filling the void created by foreign institutional investors (FIIs) post-COVID. “Collective investment methods like SIPs, along with domestic investors, have supported the market. They have helped in spreading financial awareness and financial products to every part of the country , ” he said.
Underlining the importance of protecting the interests of small investors and other key stakeholders , Goyal urged industry leaders to consider ways to reduce volatility in the stock market. The large inflow of funds , market pressure to deploy capital , and fear among investors of missing out on attractive stocks have led to concerns among investors while formulating a strategic approach (rightsizing). He noted that there is a lot of misinformation circulating about the unlimited potential of the market to go one-sided , and pointed out that the uncertainty of the stock market is a wake-up call for the industry and its small investors.
AMFI should distinguish misguided investors from others and make them aware of their duties. He noted that during the recent turmoil, bold companies have maintained fair prices in the stock market . He said that government spending and private capital expenditure are showing signs of recovery, pointing out that the duties and responsibilities of the industry towards the market outweigh the beneficial returns to investors in the short term.
Elaborating on the responsibilities of the mutual fund industry towards investors , the Minister urged the participants to work harder to ensure that investors are not taking risks. He expressed hope that such initiatives will boost India's growth for the next 22 years. Goyal urged investors to support and help investors , view financial inclusion as a collective responsibility and accept financial education as their duty.
Asserting that the assets under management (AUM) in the mutual fund industry is around Rs 70 lakh crore and will soon cross Rs 100 lakh crore, Goyal said that domestic investors, not foreign investors, will shape India's future. He underlined the need for the industry to have a fair and organised market as a wealth creator.
