HOW THE 2010S HAVE SHAPED THE BRICS MUTUAL FUND INDUSTRIES? – COUNTRY PERSPECTIVES

Abstract

This paper looks and compares the progression of the mutual fund industries of the BRICS countries, the five main emerging economies, i.e. Brazil, Russia, India, China, and South Africa. The purpose is to discuss how these industries have grown in terms of their total asset size, Number of funds and the average size for each industry, their asset allocation ratios, and which one is the most prevalent among them, percentage of total AUM in terms of the global market, their equity mutual funds as a percentage of total market value, their market concentration percentages, and the distribution channels and structure of each industry. By collecting secondary data for all these countries and comparing them on key metrics aforementioned the paper finds that China is the biggest contributor among BRICS to the global mutual fund industry; Russia lags behind all the other countries in terms of asset size, and is highly regulated as well. India has been on a positive trajectory over the past few years, and has been actively trying to reach more people, and adapt to the new digital world. Brazil has shown recovery, after witnessing a fall in mid 2010s, and South Africa is also witnessing a rise in online platforms, and reductions in the prevalence of Banks and other traditional channels..