The Hindu Business Line : More consolidation likely in MF industry: Study

THE domestic mutual fund industry is expected to go through further consolidation as smaller players get marginalised, global players enter the domestic market and large national players look to grow market share, according to a study by CREATE and KPMG International.

Among other things, this report also highlights the emerging business models and what today's business leaders should do to address the challenges.

"The asset management industry in India faces similar challenges around investor trust and fund performance in uncertain times and the challenge lies in all constituents working to incorporate best practices.

"Tackling issues such as efficiency, cost control, risk management and regulation is the key. Business models that provide the flexibility of swift response to market forces and efficient cost control need to be followed. Appropriate business processes and information systems need to be adopted," said Mr Ian Gomes, Country Managing Director - India, KPMG

Overall, market survivors need to articulate a well thought out strategy that clearly identifies the target customer base while considering the likely changes in the regulatory framework, future technological advances and how these can be leveraged in the new competitive environment, added Mr Gomes.