Indian mutual fund industry has evolved over the years. Though, it has grown at a Compounded Annual Growth Rate (CAGR) of 15 per cent from FY07 to FY13, the growth performance in the recent years have been rather subdued. Assets under Management (AUM) as a per cent of GDP for India is about 5 to 6 per cent, significantly lower than some other emerging economies, for example, 40 per cent for Brazil and around 33 per cent for South Africa. This indicates significant headroom for growth. However, the industry growth will continue to be characterized by external factors such as volatility and performance of the capital markets, and macro-economic drivers such as GDP growth, inflation and interest rates.