Top Heavy Mutual Fund Industry - New Entrant Dilemma

R. Uppily, M. S. Ramaratnam

doi:10.21844/mijia.19.2.9

R. Uppily, M. S. Ramaratnam Senior Vice President – Consumer Finance Division & Investment Operations, IndusInd Bank Limited Dean, Department of Management, HR & Commerce, Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya, Kanchipuram, TN

DOI: https://doi.org/10.21844/mijia.19.2.9

Keywords: Asset Management Company, Average Asset under Management, Mutual Fund Industry, Business Expansion

Abstract

Mutual fund investments are growing in India at a rapid phase. The mutual fund industry has witnessed a more than fivefold increase in
assets under Management (AUM) in 10 years (on 30th November 2023 the AUM was 48.75 trillion and as of November 2013 AUM was
8.90 trillion). ABC Limited a leading conglomerate in the American financial industry is looking for an entry into the top-heavy Indian
Mutual Fund Industry. Growth in this Industry has fascinated them, they are not sure what strategy they should adopt and what ROI they
can generate. Whether they should enter the industry by acquiring a stake in a smaller AMC or a bigger AMC or should take over an
existing AMC. ABC Limited is also unsure about the time of their entry. This case study presents an opportunity for students to analyze
whether ABC Limited should enter the Indian Mutual Fund industry or not and to explore the entry-level and other strategies if they are
going to enter the Indian Mutual Fund industry.