Ambit writes…..for next three quarters it will be testing times for NBFC’s, Mutual Fund investors and Fund Managers. Teams and Businesses which will survive through this pain and come out clean will lead India to it’s next economic and Financial boom
My two cents
Any industry which grows higher than nominal GDP allows more competition and create opportunities for smaller companies to increase market share but Indian MF industry inspite of clocking almost double of nominal GDP growth over last few years has led to market share consolidation among top 10 mutual funds.
So, What happens when there is a crisis like the one explained above by AMBIT?
Unfortunately it will hasten further consolidation with marginal players getting pushed out of business. Most don’t have a USP and a crisis like this, I will not be surprised to see industry down to 20-25 players in next few years from current 40 players.