Synopsis
Union Minister Piyush Goyal emphasized that domestic investors, rather than foreign institutional investors, will shape India's future. He called for the safeguarding of small investors while highlighting the mutual funds industry's role in fostering financial literacy.Key Takeaways
- Domestic investors are crucial for India's economic landscape.
- The mutual funds sector is nearing significant AUM milestones.
- Collective investment methods like SIPs have supported market stability.
- Investor education is vital for minimizing market risks.
- Government and private spending show signs of recovery.
Mumbai, March 1 (NationPress) Domestic investors are set to play a crucial role in determining India's future, as opposed to foreign institutional investors (FIIs), stated Union Minister of Commerce and Industry, Piyush Goyal, on Saturday. He called upon the industry to protect small investors and reduce market volatility.
Goyal highlighted that the assets under management (AUM) in the mutual funds sector, which is nearing Rs 70 lakh crore and is expected to reach Rs 100 lakh crore soon, will be a dominant force in the market, with domestic investors leading the way.
During his speech at the Association of Mutual Funds in India (AMFI) Summit 2025, Goyal noted that the mutual funds industry has significantly contributed to India's growth narrative by promoting financial literacy and introducing innovative financial concepts to both the industry and investors.
The minister praised domestic investors for filling the void left by FIIs after the Covid pandemic.
“Collective investment approaches like SIPs, along with the support of domestic investors, have upheld the market. They have played a key role in enhancing financial awareness and distributing financial products across the nation,” Goyal mentioned to the audience.
He pointed out that large fund inflows, market pressures to allocate capital, and investors' fear of missing out on lucrative stocks have caused crises among investors during market adjustments.
“A significant amount of misinformation has circulated regarding the market's continuous upward trajectory,” he remarked, emphasizing that the volatility of the stock market serves as a wake-up call for the industry and its smaller investors.
Goyal urged AMFI to take its responsibilities seriously by differentiating misguided investors from the informed ones.
Moreover, companies with resilience have kept their stock prices reasonable amid recent market fluctuations. “The industry’s responsibilities toward the market far exceed the short-term profitable returns enjoyed by investors,” he added.
He also mentioned that government expenditure and private capital expenditure are showing signs of recovery.
Expounding on the mutual funds industry’s duties to its investors, Goyal encouraged participants to be more vigilant in warning investors against taking unnecessary risks.
The Union Minister expressed hope that such initiatives would drive India's growth narrative for the next 22 years.
