 "AMC")
Asset management companies (AMCs), which make money by selling investment products, are seeing an increase in the share of the less-profitable passive schemes in their asset mix.
Exchange traded funds (ETFs) and index funds–two kinds of passive schemes—have doubled their share in the total assets under management (AUM) of the top 10 fund houses in the last three years. They now account for 14 per cent of the total AUM of these fund houses compared to just 7 per cent three years ago.
The AUM of passive schemes has seen a threefold growth at the top 10 fund houses from Rs 1.4 trillion during the June 2019 quarter to Rs 4.3 trillion during the June 2022 quarter.
