With the expected waves of consolidation and new partnerships, and changes in shareholders/shareholdings, the asset management industry seems to be on the threshold of new dynamics.

The Indian asset management Industry, measured in terms of assets under management, has fared well, compared to its global peers, growing at a compounded growth rate of 41% for the seven years ended March 2010.

Today, there are around 38 players and over Rs 7,600 bn worth of assets under management, invested in over 860 schemes across asset classes, including gold, equity, debt, money market instruments, etc.

However, the industry has been through volatile times due to the global financial crisis as well as the changes made by the pro-investor regulator, affecting the profitability of asset management companies.

The global financial crisis witnessed post the fall of the major banks in the developed markets impacted the assets under management of the Indian industry, as equity Asset Under Management (AUM) fell when global equity markets bottomed out and FIIs pulled out to douse the fire in their home countries. Resultantly, the share of equity assets under management in the overall assets under management fell to around one-fourth, as compared to around 40% at peak December 2007 levels.

The Analyst Magazine, Indian Mutual Fund Industry, Asset Management Industry, Global Financial Crisis, Asset Under Management, Money Market Instruments, Asset Management Companies, Global Equity Markets, Unit Linked Insurance Plan, Post Financial Crisis, Gross Domestic Product, GDP.