MF space set for digital disruption with likely entry of tech-heavy AMCs

Easing of profitability criteria could see entry of quant funds, robo advisory and smart ETFs

Topics
mutual fund industry | AMC | ETFs

Subrata Panda & Samie Modak  |  Mumbai 

The Securities and Exchange Board of India (Sebi’s) decision to relax the profitability criteria for sponsors could sow the seed for digital disruption in the Rs 30-trillion mutual fund (MF) industry.

Market players say the move will attract technology-oriented firms to set up assets management companies (AMC), which could change the investment paradigm by making popularising concepts such as quant funds, robo advisory and smart exchange traded funds (ETFs.) Sebi’s board on Wednesday said entities without a three-year profitability track record can act as mutual fund ...

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First Published: Thu, December 17 2020. 18:42 IST
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