In 2025, six new asset management companies (AMCs) are gearing up to make their mark in the mutual fund (MF) industry, which has witnessed a robust growth trajectory. The asset under management (AUM) of MFs surged by 32 per cent to ₹66.93 lakh crore in December 2024 from ₹52.74 lakh crore in December 2023.
Regulatory approvals have already been granted to Jio BlackRock, Capitalmind, Choice International, and Cosmea Financial Holdings for their entry into the MF space. Angel One and Unifi Capital have also received the final nod from the market regulator to commence operations.
Unifi Capital has taken a step further by filing a draft paper with SEBI for its debut fund – Unifi Dynamic Asset Allocation Fund. Additionally, applications from AlphaGrep Securities, Ask Investment Managers, and Monarch Networth Capital are currently under consideration with SEBI.
In the previous year, five new AMCs made their presence felt in the MF industry, with three of them opting for acquisitions as their mode of entry.
While the MF industry has experienced significant growth, particularly in equity schemes, there has been a slight uptick in the number of debt schemes as well. However, Vivek Sharma, Head of Investment at Estee Advisors, highlighted the need for more incentives to drive the adoption of debt products. The proposal for Debt-Linked Savings Schemes put forth by AMFI did not find mention in the Finance Minister’s speech.
Looking ahead, Puneet Sharma, CEO and Fund Manager at Whitespace Alpha, expressed concerns about the influx of new equity-focused funds targeting small-cap, mid-cap, and thematic segments. This trend could potentially lead to liquidity constraints and valuation risks as multiple funds vie for limited investment opportunities.
As the MF industry braces for the entry of more players in 2025, it remains to be seen how these developments will shape the investment landscape in the coming years.
