The number of mutual funds, which stagnulus over the last five years, has seen a steep increase from August 9. According to data from the Indian Securities and Exchange Council (Sebi), the number of houses of the fund was around 45 between FY19 and FY24 and recorded a sudden increase to 53 in FY25.
The key factors include a short -term capital yield (STCG), which annoys the Portfolio Administration (PMS) and AIF players, a new product that has been launched by Sebi, which provided the advantage to PMS and AIF, and reducing income for brokers. Finally, a very insufficient market with a mutual fund that everyone wants to tap.
On the PMS side, players like Abakkus Asset Managers, Carnelian Asset Management Advisors, Marcellus Investment Managers, ASK and others are, according to SEBI, are in the process of obtaining mutual funds.
On the side of mediation, Choice International Ltd, Estee Advisors PVT LTD were there. Pantomath Capital Advisors LTD, an investment banking company, also received a license for mutual findings.
In the Union FY24 budget, STCG increased to 20% of 15%, which reduced the income after taxation for PMS and AIF, said experts. Unlike mutual funds, PMS and AIF, tax, called outflow tax, pays, every time they sell shares. So whenever they have to sell shares and buy another one, the investor ultimately pays either LTCG or STCG for the profits she has received on the stocks.
“Since the STCG has been raised up to 20%, PMS systems are immediately at the disadvantage of mutual funds in terms of taxation. MF license. Marcellus Investment has also obtained a major nod from SEBI to establish a mutual fund.
PMS and AIF have captured customers; The distribution network is introduced by AS added the advantage of taxation, the mutual fund becomes a natural extension of their business on AUM, said Juzer Gabajiwala, director of Ventura.
New players are trying to connect to the industry on the back of the strong tides in space. Asset management (AUM) for mutual funds achieved £74.41 Lakh Crore in June, which means growth of 13.2% to quarter. Also, the quarter ending in June 2025 also increased by 16%year -on -year (year -on -year) in a pure inflow. Pure tide in June was on £49 095 crore.
DISRUPTOR PRODUCT
At the beginning of this year Sebi introduced a new product called Specialized Investment Funds (SIFS) with a minimum investment request £10 lakh. SIFs are located as a higher risk as much as possible compared to mutual funds and are designed to bridge the abyss between mutual funds and products with higher tickets such as PMS and AIF, where the minimum investment is £50 lakh and £1 CRORE, respectively.
One of the reasons why PMS and AIF players are now looking for mutual funds licenses is that only SIFS starts can only be allowed by mutual funds. These funds can use more risky strategies-like is that PMS and AIF are traditionally offered. The catch for alternatives is that SIF is taxed as mutual funds (without tax tax), which could make some investors choose them via PMS or AIF options, experts say.
“PMS and AIF see the opportunity to manage the company SIF, which may only be if they have a MF license. They can expand their target audience and achieve the introduction of flexible products in SIF because it offers lower ticket size than PMS or AIF, focusing on mass investors who do not cover as pus,”
Edelweiss MF, Mirae Capital Asset Mutual Fund and SBI MF have not yet announced their plans to enter SIF Space.
New flow of income
With the recent limitation of Sebi to the income of the F&O segment, many experts in the field of asset management see as another natural extension for mediation companies. (The story of the link)
The new Sebi regulations, in particular the regulations concerning IT infrastructure, apply uniformly to all regulated entities, not only to the broker. This means that most of the required systems and costs for compliance already exist for brokers, said Jimmy Patel, CEO of Quantum Mutual Fund. He said with these synergies and the need to diversify income flows, the start of AMC becomes an attractive next step.
“The only large additional expenditure in establishing ASPEMPTION (ASPEMBER) is the research and fund management itself,” Patel said.
Fund management costs can also be reduced by running passive products at the beginning. For example, Zerodha entered the space with passive funds. More recently, Choice AMC PVT LTD – whose parent company is a broker – marked plans for the beginning of passive products such as index funds and ETF.
Importantly, AMC operating costs can be kept under control.
“Conventional models with active fund management and wide distribution networks require significant research, fund managers and physical offices,” said Sandeep Bagla, CEO of Trust Mutual Fund. “However, newer approaches such as digital distribution and quantum -based strategy reduce the cost of minimizing fund management costs and more reliance on technology,” Bagla added.
Unused potential
Mutual funds are very insufficiently supported in India, and therefore more people want to use this space, experts say. “India is currently a very supported MF market and we need more mutual funds, because the industry cannot be concentrated in the hands of several best players,” Patel said.
Since June, the average AUM for the 10 best mutual funds is 76% of the total AUM industry in the mutual fund industry, according to the association of mutual funds in India (AMFI).
According to AMFI and Sebi, since March 2025, India had 5.3 Crore unique investors in mutual funds. This number is much lower than the total demat accounts in India 19.25.
If we look at the total MFS, which is currently 53, the number of PMS players is 466.
What is ahead of us?
Next year we could see the total number of mutual funds that touch around 60-65, Bagla said.
“Although we could see a lot to enter the space for mutual funds, their success will require consistent performance and confidence, unlike mediation, where clients can easily switch for better services or reduce fees,” said the industrial person. The person added that the entry into the MF was easy, but no player could gain a significant market share in the first few years.
(Tagstotranslate) Mutual fund industry
