Even as Mutual Funds manages assets worth billions of rupees, only a few of the mutual funds are making profits. Out of the 38 odd asset management companies (AMCs) or mutual funds (MFs), only about 5 or 6 are making profits, reports Economic Times.
This fact was pointed out by Vedprakash Chaturvedi, managing director of Tata Asset Management at FICCI seminar on capital markets. He also pointed out that there is a likelihood of consolidation taking place in the industry.
Nimesh Shah, managing director, ICICI Prudential Asset Management Company, said mutual funds make money by managing the assets. But if there is a 50% fall in assets under management, it impacts profits as the cost structures remain the same.
A P Kurian, chairman, Association of Mutual Funds of India, said the reason only a few mutual funds are making profits is that it is a volume game. With a fall in AUMs, the profits have gone down.
This fact was pointed out by Vedprakash Chaturvedi, managing director of Tata Asset Management at FICCI seminar on capital markets. He also pointed out that there is a likelihood of consolidation taking place in the industry.
Nimesh Shah, managing director, ICICI Prudential Asset Management Company, said mutual funds make money by managing the assets. But if there is a 50% fall in assets under management, it impacts profits as the cost structures remain the same.
A P Kurian, chairman, Association of Mutual Funds of India, said the reason only a few mutual funds are making profits is that it is a volume game. With a fall in AUMs, the profits have gone down.
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