Market Trends of Asia-Pacific Mutual Fund Industry
This section covers the major market trends shaping the APAC Mutual Fund Market according to our research experts:
Rising inflation will create opportunities
The first major trend is the impact of growing inflation on the Asia-Pacific private equity market. Because of low interest rates, many businesses have taken on excessive debt in recent years.As interest rates rise, some of these businesses may become troubled and require recapitalization. This opens the door for private equity to step in.
Rising interest rates will have an impact on private equity's sector concentration. Investing in high-growth IT companies with extremely high valuations has been a trend in recent years. The companies anticipates a shift away from high-growth companies with shaky balance sheets and toward sectors and companies with strong profitability and pricing power - factors that help businesses survive inflation.
Mutual Funds As a Savings Priority in the region
The emerging affluent are lighting a fire under economic growth in some of the world’s most dynamic markets. The emerging affluents are active savers and the savings proportion to their top priority is increasing over the years across countries in this region. From relying on basic savings accounts or time deposits, the proportion of affluents choosing mutual funds over others as their primary saving method are increasing over the years. The infographic shows the share of population considering mutual funds as a saving method in the region is presented below.
