The hit on the equity markets is likely to translate into lower revenues for the Rs 24-trillion MF industry, with the share of higher-fee generating equity assets shrinking to 37 per cent as of March 31 this year, as against 43 per cent a year ago.
“The fees charged on equity assets are usually higher than those charged on debt assets. With the share of equity shrinking in the overall pie, industry players will see their revenues come under pressure,” said a senior executive of a fund house.
