Industry over view:
Introduction of Mutual Funds
In terms of established financial services organisations' robust growth and new entrants into the
market, India has a broad financial sector that is quickly expanding. The sector includes
commercial banks, non-banking financial companies, co-ops, insurance companies, pension
funds, mutual funds, and other smaller financial institutions. The banking regulator has approved
the establishment of new firms, such as payment banks, broadening the types of entities that
operate in the market. India's financial industry, on the other hand, is predominantly a banking
sector, with commercial banks accounting for more than 64% of the total assets of the financial
system.
To liberalise, regulate, and enhance this industry, the Indian government has enacted a number of
reforms. The government and the Reserve Bank of India (RBI) have taken a number of efforts to
make it easier for MSMEs to secure finance (MSMEs). The establishment of a Micro Units
Development and Refinance Agency, the establishment of a Credit Guarantee Fund Scheme for
MSMEs, the release of instructions to banks about collateral requirements, and the establishment
of a Credit Guarantee Fund Scheme for MSMEs are among these measures (MUDRA). Thanks
to a coordinated effort from the government and the private sector, India's financial markets are
definitely among the most active in the world.
A mutual fund is an investment trust that pools the savings of a group of people who share
similar financial goals. This sum of money is set aside with the intention of achieving a specific
goal. As a result, the fund's joint ownership is "mutual," meaning that all investors share
sownership. The money is then invested by the entity in charge of the trust in capital market
instruments such as shares, debentures, and other securities. This company is referred to as an
asset management firm. The pool's earnings are subsequently distributed to its members in
proportion to their contributions. The AMC invests its funds in such a way that the profits are
maximised while the risks are minimised to a bare minimum Every Asset Management Firm in
India is required to register with the Securities and Exchange Board of India (SEBI). The Unit
Trust of India was the first company to engage in mutual funds. It was established in 1963 as a
joint venture between the Reserve Bank of India and the Indian government. The UTI's goal was
to help small and inexperienced investors buy shares and other financial products in larger
companies. In those days, the UTI had a monopoly. The Unit Scheme 1964 was one of the
company's long-running mutual fund programmes.
History of Mutual Funds
The history of Mutual Funds is as following:
(a). Phase of Inception (1964-87) The Unit Trust of India was established in the first phase
(UTI). Despite the fact that the Reserve Bank of India (RBI) and the Indian government worked
together, the latter was quickly cut off from the Unit Trust of India's day-to-day activities.
During this time, the business was the only mutual fund company in India. The Unit Linked
Insurance Plan was introduced by the UTI in 1971. (ULIP). UTI established various programmes
between that year and 1986, and was instrumental in bringing the concept of mutual funds to
India. When UTI was founded a few years ago, the goal was to not only introduce the concept of
mutual funds to India, but also to establish a corpus for nation-building. As a result, the
government included many income-tax rebates in the UTI plans to entice small Indian investors.
Unsurprisingly, UTI's investible corpus grew from Rs. 600 crores in 1984 to Rs. 700 crores in
1988. As a result, it was time for the Indian mutual sector to advance to the next level.
(b). Entry of Public Sector (1987-1993) By the end of 1988, the mutual fund industry had
acquired its own identity. From 1987, many public sector banks had begun lobbying the
government for starting their own mutual fund arms. In November 1987, the first non-UTI Asset
Management Fund was set up by the State Bank of India. This AMC was quickly followed by
the creation of other AMCs by banks like Canara Bank, Life Insurance Corporation, General
Insurance Corporation, Indian Bank, and Punjab National Bank. This opening up of the mutual
fund industry delivered the desired results. The combined corpus of all AMCs reached Rs.
44,000 crores in 1993. Experts believe that in the second phase, not only did the industry's base
grow, but it also encouraged investors to invest a larger portion of their resources in mutual
funds. It was clear that India's mutual fund industry was heading in the right direction.
(c). Entry Private Sector Phase (1993-1996) The Indian government acknowledged the
significance of liberalising the Indian economy between 1991 and 1996. Reforms in the financial
industry were urgently required. For India's economy to be rebuilt, private sector engagement
was required. With this in mind, the government decided to open up the mutual fund market to
private investors as well. This decision was well received by foreign players, who flocked to the
Indian market in large numbers. During this time, eleven private players collaborated with
overseas entities to launch Asset Management Funds. The following are a few of the top private
sector AMCs: ICICI Prudential AMC is a joint venture between ICICI Bank and Prudential Plc
of the United Kingdom. It has a portfolio of over 1400 programmes and manages a corpus of
INR 2, 93,000 crores. ii. HDFC Mutual Fund- The HDFC Mutual Fund, which was founded in
the 1990s, administers over 900 different types of funds. iii. Kotak Mahindra Mutual Fund- This
AMC manages around Rs. 1,19,000 crores in assets. It is a joint venture between the Mahindra
Group and Kotak Financial Services.
(d). SEBI Interventions and Growth, and AMFI In 1990s as the mutual fund sector grew,
asset management companies (AMCs) and the government decided it was time for some
regulation and control. Investors needed to be safeguarded, and a level playing field needed to be
established. A few years before, the Indian economy had suffered greatly as a result of bank
fraud, and there was a real risk that investors would lose their money once more. As a result, in
1996, the government passed the SEBI Regulation Act, which established a set of fair and
transparent norms for all parties. The Indian government stated in 1999 that all mutual fund
dividends would be tax-free. The goal of this move was to help the mutual fund industry flourish
even further. In the meantime, the mutual fund industry recognised the value of self-regulation
and established the Association of Mutual Funds of India (AMFI).
(e). Phase of Consolidation (February 2003 – April 2014) Following the revocation of the
original UTI Act of 1963, the Unit Trust of India was separated into two independent
corporations in February 2003. The UTI Mutual Fund (which is subject to SEBI regulations for
MFs) and the Specified Undertaking of the Unit Trust of India were the two different companies
(SUUTI). Following the split of the erstwhile UTI and the occurrence of multiple mergers among
other private sector firms, the mutual fund industry entered a consolidation phase. Financial
markets throughout the world were at an all-time low following the global economic recession of
2009, and the Indian market was no exception. The majority of investors who put their money in
at the pinnacle of the market lost a lot of money. Investors' faith in MF products was badly
shaken as a result of this. Over the next two years, the Indian mutual fund industry tried to
recover from these setbacks and rebuild itself. With SEBI removing the entry load and the long-
term effects of the global economic crisis, the position became much more difficult. The slow
growth in the Indian MF industry's overall AUM reflects this situation.
(f). Phase of Steady Development and Growth (Since May 2014) In September 2012, SEBI
announced a slew of progressive initiatives in response to India's lack of mutual fund
penetration. The goal of these initiatives was to increase transparency and security for the benefit
of all parties involved. This was SEBI's idea for reviving the Indian mutual fund industry and
increasing mutual fund penetration in India. The initiatives were successful in reversing the
unfavourable trend that had developed as a result of the global financial crisis. After the new
government took over at the centre, the situation significantly improved. Since May 2014, the
Indian mutual fund industry has seen a steady increase in overall assets under management and
total number of investor accounts. If Indians think about investing a larger portion of their money
in mutual funds, the Indian mutual fund business can develop significantly. According to market
observers, Indians have begun to shift a portion of their savings from physical assets like as gold
and land to financial instruments such as bonds and silver. However, the AMFI and the
government need to encourage Indians to invest in mutual funds even more. The Indian mutual
fund sector began in 1963 with the establishment of the Unit Trust of India. This industry has
developed over time from being dominated by the UTI to a more balanced participation of the
public and private sectors. However, by global measures, the Indian mutual fund business is still
quite modest. With increased support from AMFI and the government, the mutual fund business
may grow in leaps and bounds.
Advantages of Mutual Fund
Professional Management
Professional managers oversee mutual fund investments. These managers are well-versed in
the field and thoroughly examine numerous investment options before committing any funds
to them.
Diversification
By investing in a variety of securities, this financial method diversifies risk. A mutual fund's
portfolio contains a variety of securities that help distribute risk. If one asset in a portfolio
underperforms, the underperformance might be offset by greater returns from other assets.
Higher Liquidity
Due to their capacity to convert into cash quickly, mutual funds provide investors with more
liquidity. Investors have complete freedom to enter and exit mutual funds at their leisure.
Cost Efficient
Mutual funds are a low-cost investment option. The fees connected with mutual fund
transactions are relatively minimal, ranging from 1% to 2% of the expense ratio.
Income Reinvestment
It enables you to reinvest dividends and interest from assets back into your portfolio. Mutual
funds allow you to increase your portfolio by investing in more fund shares without paying
transaction fees.
Tax Benefits
When compared to other sorts of investments, it offers more tax advantages to investors. Section
80C allows investors to invest up to 1.5 lakh in tax-advantaged mutual funds. In addition, the
individual receives a number of other tax advantages.
Safety
Another significant benefit of mutual funds is the investment's safety. All mutual fund businesses
are governed by the SEBI, which is a statutory government entity. They must disclose all
relevant information to investors in order to ensure transparency.
Disadvantages of Mutual Fund
No Control Over Portfolio
Investors in mutual fund portfolios have little influence over their investment funds. Professional
fund managers are in charge of managing and controlling mutual funds.
Over Diversification
Another downside of mutual fund’s investment is the portfolio's over-diversification. The risk of
a portfolio diversification may be spread out, but the return cannot be maximised. In addition,
managing a widely diversified portfolio becomes tough.
Management Fees
For their management services, investors must pay a fee to fund managers. The fees offered to
investors increase their costs.
No Guarantee on Return
Investors in mutual funds are not guaranteed any returns. Mutual fund investments are subject to
market risk.
Lock-In-Period
Mutual fund funds are locked in for extended periods of time, ranging from 4 to 6 years.
Investors can't get their money out of such an investment before it matures.
Market Size
The mutual fund industry's assets under management (AUM) totalled 3,305,660 crore (US$
454.12 billion) in May 2021. A total of 100.4 million accounts were created. The mutual fund
industry surpassed 10 crore folios in May 2021. In FY21, systematic investment plans (SIP)
brought in Rs. 96,080 crore (US$ 13.12 billion) to India's mutual fund schemes. By the end of
December 2019, equity mutual funds had had a net inflow of Rs. 8.04 trillion (US$ 114.06
billion).
The insurance industry is another important part of India's financial sector. The insurance sector
has been rapidly growing. In FY20, life insurance companies' total first-year premiums totaled
Rs. 2.59 lakh crore (US$ 36.73 billion).
In addition, India's largest stock market, the Bombay Stock Exchange (BSE), will launch a joint
venture with Ebix Inc to create a powerful insurance distribution network in the country via a
new distribution exchange platform.
In fiscal year 21 (FY21), $4.25 billion was raised through 55 initial public offerings (IPOs)
(IPOs). In FY21, there were 1,920 and 5,542 listed businesses on the NSE and BSE,
respectively.
CHAPTER – 2
FINANCIAL SERVICES
2.1 Global Scenario:
The global financial services market grew from $25848.74 billion in 2022 to $28115.02 billion
in 2023 at a compound annual growth rate (CAGR) of 8.8%. The Russia-Ukraine war disrupted
the chances of global economic recovery from the COVID-19 pandemic, at least in the short
term. The war between these two countries has led to economic sanctions on multiple countries,
a surge in commodity prices, and supply chain disruptions, causing inflation across goods and
services and affecting many markets across the globe. The financial services market is expected
to grow to $37484.37 billion in 2027 at a CAGR of 7.5%.
Western Europe was the largest region in the financial services market in 2022. North America
was the second-largest region in the financial services market. The regions covered in the
financial services market report are Asia-Pacific, Western Europe, Eastern Europe, North
America, South America, Middle East, and Africa.
The global payments industry has witnessed a rapid increase in the adoption of EMV
technology.This growth is driven by the higher level of data security offered by EMV chips and
PIN cards as compared to traditional magnetic stripe cards. EMV is a security standard for
various payment cards, including debit, credit, charge, and prepaid cards.
The countries covered in the financial services market are Argentina, Australia, Austria,
Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland,
France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico,
Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania,
Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland,
Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.
The global mutual fund assets market size was valued at $54.93 trillion in 2019, and is
projected to reach $101.2 trillion by 2027, growing at a CAGR of 11.3% from 2020 to
2027. A mutual fund is one of the most preferred investment alternatives for small
investors in the market. In addition, it offers an opportunity to invest in a professionally
managed & diversified portfolio at a relatively low cost. Moreover, it pools money from
several investors and invests the money in securities such as stocks, bonds, short-term
debt, and others. Furthermore, each share represents an investor’s ownership in the
fund and the income generated from the investments.
The mutual fund assets industry has been largely affected due to the outbreak of the
COVID-19 pandemic, due to the uncertainty underlying in companies’ profitability,
economic slowdown, and investors ability to repay funds in the market.
2.2 National Scenario:
India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payment banks to be created recently, thereby adding
to the type of entities operating in the sector. However, the financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64% of the
total assets held by the financial system.
The Government of India has introduced several reforms to liberalise, regulate and enhance this
industry. The Government and Reserve Bank of India (RBI) have taken various measures to
facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These
measures include launching Credit Guarantee Fund Scheme for MSMEs, issuing guidelines to
banks regarding collateral requirements and setting up a Micro Units Development and
Refinance Agency (MUDRA). With a combined push by Government and private sector, India is
undoubtedly one of the world's most vibrant capital markets.
As of January 2023, AUM managed by the mutual funds industry stood at Rs. 39.62 trillion
(US$ 478.08 billion). Inflow in India's mutual fund schemes via systematic investment plan
(SIP) stood at Rs. 1.5 lakh crore (US$ 18.09 billion). Equity mutual funds registered a net inflow
of Rs. 22.16 trillion (US$ 294.15 billion) by end of December 2021. The net inflows were US$
888 million (Rs 7,303.39 crore) in December as compared to a 21-month low of US$ 274.8
million (Rs 2,258.35 crore) in November 2022.
Another crucial component of India’s financial industry is the insurance industry. The insurance
industry has been expanding at a fast pace. The total first-year premium of life insurance
companies reached US$ 32.04 billion in FY23. In FY23 (until December 2022) non-life
insurance sector premiums reached at Rs. 1.87 lakh crore (US$ 22.5 billion).
Furthermore, India’s leading bourse, Bombay Stock Exchange (BSE), will set up a joint venture
with Ebix Inc to build a robust insurance distribution network in the country through a new
distribution exchange platform. In FY23, US$ 7.17 billion was raised across 40 initial public
offerings (IPOs). The number of companies listed on the NSE increased from 135 in 1995 to
2,113 by FY23 (till December 2022).
2.3 State level Scenario:
Gujarat is one of India’s most industrialised states and traditionally has been strong in
petrochemicals, textiles, pharmaceuticals, automobiles, and gems and jewellery. Many experts
believe it is home to some of the country’s best hospitals – including Sterling Hospitals, Apollo
Hospital and SAL Hospital – while it is also a leader in life sciences.
However, Gujarat now has ambitious plans to diversify into financial services and Gujarat
International Finance Tec-City (known as Gift City) started operating in April 2015. It is a
planned ‘smart city' covering 360 hectares with 5.75 million square metres of built-up area,
located close to Gandhinagar.
A special economic zone, Gift City is India’s first international financial services centre (IFSC)
and is being developed as a global financial services hub. It is a national and international centre
of IT and IT-enabled service companies, finance companies, global trading, insurance, offshore
banking and data centres. It is also home to a commodity exchange, India INX.
The hub is already host to more than 200 financial and technology institutions and in excess of
$1.6bn has been invested there. Recently, Standard Chartered became the first global bank to
receive in-principle regulatory approval and will soon open an IFSC banking unit at the centre.
In the long term, Gift City expects to create about 500,000 direct jobs and an equal number of
indirect jobs.
AHMEDABAD: Leading Gujarat companies outperformed the broader markets in the financial
year 2022-23, with up to 78% increases in market capitalization. Companies such as AIA
Engineering (78%), Zydus Lifesciences (41%), Torrent Pharma (10.76%) Gujarat Fluorochem
(10.29%) and Torrent Power (3.77%) registered positive returns in this period.
However, a number of other companies including state PSUs lost up to 67% in the financial year.
Analysts say Gujarat-based companies have strong presences in their sectors and bright
projections, which helped them do well in a difficult economic scenario.
2.4 Major Players According to current Trends:
Bajaj Finance Limited
Tata Capital Financial Services Ltd
Aditya Birla Finance Ltd
L & T Finance Limited
Muthoot Finance Ltd
Mahindra & Mahindra Financial Services Limited
HDB Financial Services
Power Finance Corporation Limited
Shriram Transport Finance Company Limited
2023 will be a challenging year for financial institutions. Innovative new technologies are
redefining the sector, shaping the services that financial organisations offer, the ways in which
they interact with consumers, and the ways in which they apply new sources of data across
departments. But the onset of growing economic instability is putting entire markets in jeopardy
and threatening to yield mounting uncertainty for lenders and borrowers alike.
The Above mentioned Institutions follow this top 4 trends:
Open banking will dominate the future
Cloud-native systems will replace legacy alternatives
Artificial intelligence (AI) and machine learning (ML) will increase in importance
Cybersecurity continues as a top priority
1. Open Banking will dominate the future
According to Statista, the number of global open banking users “is expected to grow at an
average annual rate of nearly 50 percent between 2020 and 2024, with the European market
being the largest”. Considering how open data benefits consumers as well as financial players,
it’s easy to understand why this trend will become increasingly popular moving forward.
By granting third parties access to consumers’ financial data, organisations can better understand
how consumers behave, what they want, and most importantly, what they need. In turn, financial
institutions can therefore improve their customer experience, which results in higher retention
and engagement.
2. Cloud-native systems will replace legacy alternatives
Leading financial organisations continue to embrace cloud-native systems. For example, in 2020,
HSBC signed a long-term deal with Amazon Web Services to move their existing legacy
functions over to new cloud-based alternatives. And then there’s Deutsche Bank, which
partnered with Google to deliver a cloud-native “fully-managed environment for applications”.
But why is the cloud so important? According to IBM, cloud-based systems support increased
agility, decrease IT costs and operational expenses, and play a key role in ensuring that
employees can be effective when working remotely.
3. Artificial intelligence and machine learning will increase in importance
Artificial intelligence (AI) and machine learning (ML) make organisations more efficient and
more effective. These technologies gather, sort, and analyse enormous datasets in seconds—and
are almost error-free. Financial institutions can spend their time acting on these data-driven
insights, instead of wasting unnecessary time and effort manually digging through the data itself.
IDC predicts that by 2026, 85% of organisations will use AI and ML in some capacity to
augment their foresight, resulting in a 25% increase in productivity.
4. Cybersecurity will become a top priority
Cybersecurity has always been crucial for financial institutions. However, with the number of
data breaches up until the 30th of September 2021 exceeding the total number of events
throughout 2020 by 17%, it’s clearly more of a concern than ever before. These cyber attacks
have a wide-ranging impact on organisations. In fact, 42% of businesses say that digital fraud
prevents innovation and halts their expansion into new channels.
Hence, financial institutions must prioritise cybersecurity in 2023 and beyond. They must not
only optimise their own internal processes, but they must also be selective about only working
with third parties that put data security at the heart of everything they do.
Government Initiatives
Under the Union Budget 2021-22, the government permitted 100 percent FDI for
insurance intermediaries and boosted the FDI cap in the insurance sector to 74 percent
from 49 percent.
In January 2021, the Central Board of Direct Taxes introduced an automated e-portal on
the department's e-filing website to process and receive tax evasion, foreign concealed
assets, and 'Benami' property complaints.
In December 2020, the Reserve Bank of India issued a draught circular on NBFC
dividend declarations, proposing that NBFCs have a Capital to Risk Weighted Assets
Ratio (CRAR) of at least 15% for the previous three years, including the accounting year
for which it intends to declare a dividend.
In November 2020, the Union Cabinet approved the government's equity infusion plan in
the NIIF Debt Platform, which is funded by the National Investment and Infrastructure
Fund (NIIF), which is made up of Aseem Infrastructure Finance Limited (AIFL) and
NIIF Infrastructure Finance Limited (NIIF) (NIIF-IFL).
In November 2020, two Memorandums of Understanding (MoUs) were signed in the
local market: one between India International Exchange (India INX) and Luxembourg
Stock Exchange, and another between State Bank of India and Luxembourg Stock
Exchange for financial services, ESG (environmental, social, and governance), and green
finance.
On November 11, 2020, the Cabinet Committee on Economic Affairs approved the
continuation and remodelling of the ‘Infrastructure Viability Gap Funding (VGF)
Scheme' for financial support to public-private partnerships (PPPs) through 2024-25, with
a total outlay of Rs. 8,100 crore (US$ 1.08 billion).
Road Ahead
By 2028, India is predicted to be the world's fourth largest private wealth market.
Because of its strong banking and insurance sectors, India is now one of the most vibrant
economies in the world. The insurance industry has reacted positively to the loosening of
foreign investment laws, with many corporations announcing plans to boost their
holdings in joint ventures with Indian enterprises. There could be a slew of collaborative
ventures between global insurance behemoths and local businesses in the coming
quarters.
By 2025, the Association of Mutual Funds in India (AMFI) hopes to increase AUM by
nearly five times to Rs. 95 lakh crore (US$ 1.47 trillion) and investor accounts by more
than three times to 130 million.
By 2022, India's mobile wallet market is expected to develop at a compound annual
growth rate (CAGR) of 150 percent, reaching US$ 4.4 billion, with mobile wallet
transactions reaching Rs. 32 trillion (USD$ 492.6 billion).
Major Player in Industry
ICICI Prudential Mutual Fund
ICICI Prudential Asset Management Company Ltd. is the country's largest asset management
company (AMC), with an AUM of around 3 lakh crores. It is a joint venture between India's
ICICI Bank and the United Kingdom's Prudential Plc. It all began in 1993.
The Chairperson of this AMC is Ms. Chanda Kochhar. AMC also provides Portfolio
Management Services (PMS) and Real Estate to investors in addition to mutual funds.
HDFC Mutual Fund
In terms of AUM, HDFC Mutual Fund is ranked second. It is one of the country's major mutual
fund companies or AMCs, with a fund size of approximately 3 lakh crores.
In 1999, HDFC Asset Management Company (AMC) was established. In the year 2000, it was
permitted to function as the AMC for HDFC Mutual Fund. HDFC Mutual Fund's Managing
Director is Milind Barve.
Aditya Birla Sun Life Mutual Fund
This fund house, formerly known as Birla Sun Life Asset Management Company, is the third
largest in terms of assets under management (AUM).
Aditya Birla Sun Life (ABSL) Asset Management Company Ltd is the company's current name.
It is a partnership between India's Aditya Birla Group and Canada's Sun Life Financial Inc. It
was founded in 1994 as a cooperative venture.
SBI Mutual Fund
SBI Funds Management Pvt Limited is a joint venture between the State Bank of India (SBI) and
Amundi, a financial services firm based in France that specialises in asset management. It was
first released in 1987.The Managing Director and CEO is Ms. Anuradha Rao.SBI Fund Guru, an
investor education project, debuted in 2013.
L&T Mutual Fund
The Asset Management Company (AMC) for all L&T Mutual Fund schemes is L&T Investment
Management Limited. The AMC is sponsored by L&T Finance Holdings Limited (LTFH), a
publicly traded firm. It first opened its doors in 2010.
Reliance Mutual Fund
Reliance Mutual Fund is one of India's largest mutual fund firms, with around 2.5 lakh crore in
assets under management. Reliance Mutual Fund, a subsidiary of the Reliance Anil Dhirubhai
Ambani (ADA) Group, is one of India's fastest growing asset management companies.
Reliance Mutual Fund is sponsored by Reliance Capital Limited (RCL) and managed by
Reliance Capital Trustee Co. Limited (RMF). On June 30, 1995, it was first registered. Reliance
Mutual Fund was formerly known as Reliance Capital Mutual Fund and changed its name to
Reliance Mutual Fund in 2004.
Ckredence wealth
Ckredence Wealth is the innovational growth of Chirag Investments which started in 1987 as a
comprehensive wealth management services provider. It has 160 clients so its AUM is 658 cr in
total. This firm is only in Gujarat and Maharashtra branches still firm is continuous growing.
Kotak Mahindra Mutual Fund
Mr. Uday Kotak founded the Kotak Group in 1985, and Kotak Mahindra Mutual Fund is a
component of it. The asset manager for Kotak Mahindra Mutual Fund is Kotak Mahindra Asset
Management Company (KMAMC) (KMMF). KMAMC first opened its doors in 1998.
Franklin Templeton Mutual Fund
Templeton Asset Management India Pvt. Limited, a subsidiary of Franklin Templeton, was
founded in 1996. Franklin Templeton Asset Management (India) Pt Limited is the new name for
this mutual fund.
DSP Mutual Fund
DSP BlackRock is a partnership between DSP Group and BlackRock, the largest investment
management organisation in the world. The trustee for the DSP BlackRock Mutual Fund is DSP
BlackRock Trustee Company Private Ltd.
Axis Mutual Fund
In 2009, Axis Mutual Fund launched its inaugural scheme. The MD and CEO is Mr. Chandresh
Kumar Nigam. Axis Mutual Fund is owned by Axis Bank Limited, which owns 74.99 percent of
the company. Schroder Singapore Holdings Private Limited owns the remaining 25% of the
company.
Distribution:
Mutual funds in India are distributed mainly in 2 ways:
1.Online
Customers can purchase mutual funds either directly from the asset management company's
website or through brokers. A number of new sites have emerged that provide direct mutual
funds on their platforms. These platforms allow subscribers to purchase mutual funds. Direct
mutual funds offer higher returns, ranging from.5% to 1.5 percent higher than their normal
equivalents. Because brokerage fees are not included in the returns, this is the case. A 1%
reduction from a 12 percent return on mutual funds results in an 8.33 percent lower return to the
investor, which is a significant sum.
2.Offline
The majority of asset management firms have a physical distribution network. These distributors
mostly sell traditional mutual funds with a commission attached. In India, some of the most well-
known distributors include Funds India, NJ, Prudent, and QFund.
