AMCs see Sebi move spawning consolidation, no. of funds

The Sebi's decision to categorise the number of similar mutual fund schemes and also to cap 'me-too' products will result in a reduction of the number of funds to 1,300 from around 2,000 products now.

Markets watchdog Sebi had on Friday asked mutual funds to categorise all their schemes within five baskets, in a bid to weed out multiple fund launches on similar themes.

The Sebi move is expected to make it easier for customers, who are now faced with plethora of choice of over 2,000 funds managed by 41 fund houses in the over Rs 20 trillion MF industry, feel industry experts.

The decision will also lead to consolidation in equity funds as most of the AMCs hold more than one funds in the same sub category now.

The over Rs 20 trillion AMC industry has 41 players.

But three AMCs handle only infrastructure debt funds, hence the total number of fund houses to be affected will be 38, as per the industry body Amfi.

Under the Sebi classification, which broadly caps the fund categories to five, that are sub-divided into 36 categories, will see that total number of funds will come down 1,368 from over 2,000 now, Jeevan Kumar, head of investment advisory business at Geojit Financial Services, told

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