Pointing out to the high concentration of top 10 AMCs market share, UK Sinha, SEBI Chairman took serious note of the inability of small AMCs to raise their market share. “77% of AUM is contributed by top 10 AMCs and only 1% by the bottom 10 AMCs,” he said at the 9th CII Mutual Fund Summit.
He urged AMCs to have a relook at their business model if they are not able to attract retail investors. SEBI has formed a committee which is working on a long term policy for mutual funds. SEBI chairman said that enough incentives have been provided to the industry to expand their market share and the mutual fund policy will have a disincentive for AMCs if they fail to garner a certain percentage share of their assets from B-15 cities.
He complimented the industry on raising the share from B-15 cities. The SEBI Chairman was also appreciative of the fact that the industry is providing better returns in equity funds. “Over a three year and five year period the percentage of equity AUM which has outperformed their benchmarks has gone up from 70% in 2012 to 77% in 2013.This is something to be proud of.”
