New entrants leveraging technology to attract customers in MF industry

Recent entrants are leveraging technology and low-cost 'passive investing' to attract customers in an industry where market penetration is low

Here is a paradox: Ind­ian asset management com­­panies (AMC) have seen a stupendous rise in their assets under management (AUM) (see chart). However, the penetration of mutual funds (MFs) in India remains far below global averages and emerging market peers such as Brazil and South Korea.
 
This may change given the rush of new players — those in the financial services business and those diversifying from other industries — entering the bu­siness to tap the savings of new-generation investors (see table).
 
In the past few months, players such as Bajaj Finserv, Zer­odha and Samco, among others, have received