To choose a fund scheme from over 2,000 that exist makes it a daunting task for investors. To bring in some balance, Sebi has been asking AMCs to consolidate their portfolio of fund schemes. Many have been consolidating their offerings, where complications of similar fund schemes has arisen post buyout or merger of other AMCs. Recently, Sebi has again emphasised on AMCs to merger schemes of similar categories, such as creating a single largecap equity fund than having multiple such schemes.
In fact, with the merger of DHFL Pramerica Asset Managers and Deutsche Bank’s Indian mutual fund assets, Sebi insisted that similar schemes be merged before the acquisition went through. Such a move is in the interest of investors and it will help not bring down the choice, which is otherwise confusing and difficult to wade through for most common investors. With mobile commerce websites soon to sell mutual funds, having a manageable set of funds to sell will help these intermediaries as well.
Scheme consolidation
Scheme consolidation
