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Kolkata: Mutual Funds operators have decided to focus on tier II and III cities to make more people invest and realise the target of doubling the size of the mutual funds market in India in the next five years.

As in July 2018, the mutual funds market size in the country stands at Rs 23.06-lakh crore and the set target is to make it Rs 50-lakh crore by 2022.

N S Venkatesh, the CEO of Association of Mutual Funds in India (AMFI), today said that all mutual funds would now have an increased attention to smaller cities so to make more people invest in mutual funds and harvest the benefits. Venkatesh was speaking at an interactive session organised by the Merchants’ Chamber of Commerce & Industry in Kolkata today.

There are now only about 1-lakh mutual fund distributors in the country, which should be increased to 5-lakh to meet the target. There are some 29-crore income tax PAN holders in Indian and there is a huge potential of channelising them to create more investors, Venkatesh said.

S Madhusudanan, the regional director of SEBI, who also addressed the session, said that adequate infrastructure should be created in smaller cities and towns for the growth of mutual funds investor base. People should be advised and made aware of the pitfalls of short-term gains, he said.