Under-penetration of mutual funds in India and an opportunity to earn annuity income once the fund builds up a good book of assets are the chief attractions for many new players to foray into mutual fund business.
In fact, three new players — Samco Securities, Bajaj Finserv and Zerodha are close to starting their mutual fund business. While Samco has received final approval from SEBI, Bajaj and Zerodha have received the regulator's in-principle approval. The in-principle nod from SEBI is the first step to final approval for mutual fund applicants.
The firms are yet to announce their strategy to make a mark in the Rs 33 trillion industry.
What is clear as of now is that Zerodha's focus will be on passive funds, while Samco will target the active space.
This is the start of a new phase in the industry. Several other companies, mostly fintechs and PMS firms have also applied for the license. Helios Capital Management, Capitalmind, Unifi Capital and Alchemy Capital are some of them.
Then there are the likes of Angel Broking, Paytm, Niyo and PhonePe who are either considering the option or are in the advanced stage of approaching SEBI for the license.
There are also companies which are looking to enter the asset management space by way of acquisitions. In fact, online investment platform Groww recently bought Indiabulls Asset Management Company. White Oak which acquired Yes AMC in 2020 is awaiting approvals.
