Mumbai, Aug. 10 As many as 26 applications for setting up mutual funds arepending with the Securities and Exchange Board of India (SEBI) at various stages of approval. There are already 36 fund houses actively soliciting investments for over 2,000 schemes.
Room for more
Though retail investors have trouble selecting an MF scheme from among the thousands on offer, industry observers feel that there is headroom for many more to set up shop.
“In India, MF penetration is very low and the coverage in terms of the savings invested in mutual funds is also negligible,” said Mr A.P. Kurian, Chairman, Association of Mutual Funds in India.
With the top five MFs accounting for over 50 per cent of the total asset base, there is scope for more funds, said Mr Dhirendra Kumar, CEO of Value Research. The mutual fund industry manages an asset base of Rs 6,89,946 crore as on July end.
Those awaiting SEBI approval include IndiaBulls, India Infoline, Schroder Investment Management, Axis Bank, Sanlam Investment Management, ASK Investment Holdings Pvte Ltd, Karvy Stock Broking Ltd, Mahindra & Mahindra Financial Services, Union Bank a-KBC Asset Management and IDBI Bank.
Consolidation
With many more players foraying into the mutual fund space, some industry officials see scope for consolidation.
Some would even be coming in with a possible eye on for acquiring existing businesses, said Mr Kurian.
There might be consolidation in the future, with some marginal players wanting to exit and new and existing players taking over those businesses, said Mr Saurabh Nanavati, CEO of Religare Mutual Fund.
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