The asset management landscape in India is undergoing significant expansion, particularly with the entry of tech-focused firms into the mutual fund sector. Recently, Lakshya Asset Management Company (AMC) received approval from the Securities and Exchange Board of India (SEBI) to launch its operations. Lakshya is sponsored by Wealth First Portfolio Managers, a listed wealth management firm.
The founding team of Lakshya AMC includes key members from Benchmark AMC, such as Sanjiv Shah, Rajan Mehta, and Sanjay Gaitonde. Benchmark AMC has a historical significance in the Indian market, being an early pioneer in the exchange-traded fund (ETF) arena. It introduced several innovative products like Nifty BeES, Gold ETF, and Liquid BeES, though it experienced challenges with other offerings, including an Inverse BeES ETF that did not receive SEBI approval when the derivatives market was still developing.
In addition to Lakshya, several other firms have recently secured SEBI approval to enter the mutual fund space. These include AlphaGrep Mutual Fund, led by CEO Bhautik Ambani, and Abakkus Asset Manager, established by market veteran Sunil Singhania. Furthermore, ASK Asset & Wealth Management intends to expand its portfolio by entering the mutual fund sector. Also noteworthy is Monarch Networth Capital Ltd, which has received a green light to launch “Monarch Mutual Fund” through its subsidiary.
The competitive environment is intensifying as a variety of ambitious players—including tech giants like Zerodha, Groww, and Jio BlackRock, as well as specialized firms such as Helios and Capital Mind—continue to reshape the mutual fund landscape. Meanwhile, the TVS Venu Group is engaged in definitive agreements to acquire Prudential Financial Inc.’s entire stake in PGIM India Asset Management and its trusteeship.
Amid these developments, there has been a notable increase in investor participation. Record inflows through systematic investment plans (SIPs) in March pushed overall equity investments to an eight-month high, despite prevailing market volatility. Retail investors exhibited strong confidence in the sector, with a remarkable ₹32,087 crore inflow recorded in SIPs, resulting in a rise in contributing accounts to 9.72 crore. Over the past five years, the industry has seen Assets Under Management (AUM) more than double, rising from ₹31.43 lakh crore to ₹73.73 lakh crore, with total investor folios reaching a historic 27.39 crore.
SEBI’s easing of sponsor norms has contributed to a fresh wave of competition in the asset management field, attracting various players, including private equity funds and fintech companies. The ongoing trend emphasizes innovation, particularly as passive investing gains traction and some managers are shifting towards AI-based investment strategies. The potential for these new entrants to expand market opportunities rather than merely redistributing existing ones could stimulate overall industry growth, benefiting all stakeholders involved.
Published on April 17, 2026.
