AMC Industry currently faces a number of Innovative and Disruptive Forces at play-
1. New Asset Selection concepts such as Smallcase.
2. Rising Dominance of Dynamic Asset Allocation
3. ETF and Passive Investing gaining market
4. New Distribution Channels coming up and gaining traction. Rise of Fin-tech distributors.
AMC Industry in India is regulated by SEBI under SEBI(Mutual Funds) Regulations, 1996. All the rules, regulations and actions for AMCs are monitored by SEBI. To operate in the space, adequate license needs to be obtained from SEBI. SEBI operates with the purpose of safeguarding investor interests.
Major Trends in AMC industry in India are-
1. Impact of Demonetization – Catalyst for Financial Assets.
2. Continuous Rise in Participation through SIPs
3. Rise in Share of Financial Assets against physical assets.
4. Shift from Distributor to Direct Channel
5. ESG Funds starting to enter market.
6. Passive Funds and ETFs gaining market share
7. Rise of Individual Investors in AUM.
8. Bank backed AMCs gaining AUM.