New Delhi, May 26: Country's mutual fund industry is expected to see its assets more than double to Rs 12.8 trillion by 2012, with the entry of over 15 new fund houses in the near future, a latest report says.

US-based financial services research and consulting firm Cerulli Associates stated "India will continue to be one of the faster growing asset management markets in the world, with our projections showing assets will more than double to Rs 12.8 trillion over the next five years to 2012".

The report named 'Asset Management Opportunities in India 2008' stated that the growth in assets over the next half a decade would be driven by strong economic growth, deeper financial markets and a multi-varied distribution system.

At the end of 2007, there were 33 fund houses in the country including 16 joint ventures and 3 wholly-owned foreign asset managers with total assets worth Rs 5.4 trillion.

The international asset management community is also well -represented in the country and is likely to grow as more global asset managers intend to set up business here.

Cerulli believes the total number of asset managers in India could rise to as many as 50 in the near future, with many of the new entrants coming from abroad.

The research firm's projections suggest that Indian mutual fund market would see an 18 per cent compounded annual growth rate (CAGR) over the next five years.

The growth of the domestic MFs might appear modest compared to the recent past, but it is likely to remain subdued in the short term as internationally the market is expected to see slower growth, it stated.