Mutual fund investments in India are set for robust growth over the next five years, led by a gradual shift from traditional savings to market-linked instruments, Jio Financial Services Chairman K.V. Kamath said during a discussion at the JioBlackRock event titled 'Investing for a New Era'. 

“There will be a reallocation of money from savings to investments. Mutual fund investments in India will more than double in the next five years,” Kamath said, highlighting the growing appetite for financial products beyond traditional bank deposits. 

Kamath was speaking at the first session of the event, which featured a conversation with Rob Goldstein, Chief Operating Officer (COO) of global asset management giant BlackRock. The session was focused on how India’s investment landscape is evolving amid rising participation, technology adoption, and deeper capital markets. 

India’s mutual fund industry needs to expand

Goldstein echoed this optimism, noting that India’s mutual fund industry, currently valued at under $1 lakh crore (trillion), needs to expand significantly to support the country’s economic ambitions. “If India is to become the third-largest economy in the world, capital markets have to grow. The mutual fund industry needs to be a lot bigger than under a trillion dollars. The opportunity is just beginning,” he said. 

Goldstein underlined the strategic importance of the partnership between BlackRock and Jio Financial Services, saying it combines global investment expertise with India’s vast digital reach. “In India today, there is a combination of technology that we bring through BlackRock and the distribution reach and brand of Jio. Bringing those together allows us to deliver something truly unique to the market,” he said. 

Long-term benefits of investing

Highlighting the long-term benefits of investing, Goldstein described compounding as the “real miracle” of capital markets. He said India offers a rare opportunity to scale global best practices in investing. “Many more people in India need to enter the capital markets and take advantage of compounding returns,” he added, expressing confidence that millions of Indians could benefit over the coming years. 

Kamath noted that India has reached a stage where investors are more willing to experiment with technology-driven financial products. He said the initial months of adopting a direct mutual fund approach tested investor confidence, but the Covid pandemic accelerated comfort with digital financial transactions. 

On the role of artificial intelligence in investing, Goldstein said both human judgement and technology will coexist. “For the next decade, there is room for human stock pickers and AI. Investing is part art and part science, and we are leveraging both,” he said. 

The event also featured a fireside chat between Reliance Industries Chairman and Managing Director Mukesh Ambani and BlackRock Chairman and CEO Larry Fink, alongside sessions on access, technology, and the role of investing in driving economic growth.