Number of asset management companies dip even as assets swell, shows data

The assets under management (AUM) for the domestic mutual fund (MF) industry has jumped six fold in the past decade to Rs 38.2 trillion. However, the number of asset management companies (AMCs) — managing at least some AUM — have declined from 45 to 42. 

Experts say while the industry has a lot of growth potential, intense competition and low margins make it challenging for smaller players — unless they carve out a niche for themselves. 

The so-called total expense ratio (TER) — the fees charged by AMCs for managing and operating schemes — have declined over the years due