Kolkata Aug 24 (IANS) Mutual Funds industry which is looking at a greater penetration in smaller cities to bring new investors is expected to continue with the growth momentum despite hardening of interest rates an official said here on Friday.
"Mutual fund growth momentum will continue in the current fiscal. Economic growth backed by policies will eventually add new investors in the industry with overall economic prosperity " Association of Mutual Funds of India (AMFI) CEO N.S. Venkatesh said.
The overall mutual fund industry grew by 17 per cent and retail segment was up by 34 per cent in the last fiscal.
Venkatesh said that in order to reach the Rs 50 lakh crore from the current level of Rs 24 lakh crore in 5 years there should be widening and deepening of the distributor base particularly reaching out to Tier II and Tier III cities.
There had been only one lakh distributors which should be increased to 5 lakh who would bring in investors from the smaller cities for wealth creation he said at the Mutual Funds Forum organised by Merchants Chamber of Commerce and Industry.
The association would continue campaigning aggressively to bring new investors on board and had spent Rs 200 crore in the last fiscal he said.

--IANS bdc/prs