Naturally the scale benefit should accrue to the ecosystem in general which essentially the investors benefit. And if you look at the higher the size, lower the fees have already been given as a roadmap about three years back like it was given in the year 2019," says A Balasubramanian, MD & CEO, ABSL AMC.
The size and scale and the productivity benefits are something which are visible for AMCs and it should be their fiduciary duty to pass part of that to the unit holders. Everything cannot be passed on, but some part needs to be passed on. What do you think that middle path could be where AMCs are happy and mutual fund investors are delighted?
What you say is right, I think the way the regulatory framework has been evolving all these years the industry definitely has to attain a scale and as a result of that today what we are seeing in the marketplace that 40 lakh crore industry size, about 20 lakh crore equity size is a function of how the industry has been expanding the base and building a scale.
