Fresh wave of AMCs crowd mutual fund arena

In recent years, the mutual fund space is being reshaped by a host of ambitious new entrants, from tech giants such as Zerodha, Groww and Jio BlackRock to specialised firms like Helios, Choice International, Capital Mind and Wealth Company | Photo Credit: wutwhanfoto

The asset management landscape is expanding rapidly with many new age, tech-focused entrants joining the market.

Lakshya Asset Management Company (AMC) will soon join the growing list of players after receiving approval from the SEBI to enter the lucrative mutual fund business. The new AMC is sponsored by Wealth First Portfolio Managers, a listed wealth management company.

Lakshya AMC has brought on board key members of the founding team of Benchmark AMC, including Sanjiv Shah, Rajan Mehta, and Sanjay Gaitonde. Benchmark AMC was a pioneer in India’s exchange-traded fund (ETF) space, introducing several industry-first products such as Nifty BeES, Gold ETF, Gold BeES, and the world’s first money market ETF, Liquid BeES. The firm had also filed for Inverse BeES — an ETF designed to benefit from market declines — but did not receive approval from SEBI at the time, as the derivatives market was still in its nascent stages.

Growing list

Among others that have secured SEBI’s nod is tech-driven AlphaGrep Mutual Fund led by CEO Bhautik Ambani. Abakkus Asset Manager (Abakkus AMC), a research-driven investment firm founded by market veteran Sunil Singhania has also been permitted to launch mutual fund business.

ASK Asset & Wealth Management, which has over four decades of experience in handling equity markets through its Portfolio Management Services (PMS) and alternative investment platforms, will enter the MF space. Broking house Monarch Networth Capital Ltd has also got the greenlight to operate mutual fund business under “Monarch Mutual Fund” with its subsidiary acting as the AMC.

In recent years, the mutual fund space is being reshaped by a host of ambitious new entrants, from tech giants such as Zerodha, Groww and Jio BlackRock to specialised firms like Helios, Choice International, Capital Mind and Wealth Company.

Interestingly, the TVS Venu Group has entered into definitive agreements to acquire Prudential Financial Inc’s entire stake in PGIM India Asset Management and PGIM India Trustees. PGIM India, a wholly owned arm of PGIM— the global investment management business of US-based Prudential Financial Inc — also offers alternative investment funds, portfolio management services and offshore advisory solutions.

Buoyant mood

Record inflows through systematic investment plans last month pushed overall equity investments to an eight-month high in March despite market volatility amid the West Asia war.

Despite market volatility and recent underperformance, retail investors in India continue to demonstrate strong conviction in the asset management industry. This is evident by the record ₹32,087 crore inflow into Systematic Investment Plans (SIPs) in March, with the number of contributing accounts climbing to 9.72 crore. This long-term optimism has fuelled an explosive growth trajectory for the entire sector, with Assets Under Management (AUM) more than doubling from ₹31.43 lakh crore to ₹73.73 lakh crore in just five years. This momentum has brought the total number of investor folios to a historic 27.39 crore.

By easing sponsor norms, SEBI has unleashed a new wave of competition in the asset management sector, inviting ambitious players like private equity funds and fintechs to the table. The eventual impact will depend on their ability to innovate, especially as passive investing gains traction. This segment will turn dynamic with some managers are increasingly leaning towards AI-linked investment strategies.

Should they manage to expand the market pie rather than just slice it differently, the resulting growth will propel the entire industry forward, benefiting everyone.

Published on April 17, 2026