Non-bank fund houses forge ties with distributors to gain market share

Such tie-ups to help fund houses compete with MFs that have their own bank channels

Non-bank fund houses are looking to enter into special arrangements with distributors to expand their asset base. Recently, Essel Mutual Fund (MF) gave a token stake in its business to NJ India Invest -- country's largest distributor in terms of commissions. In July, Reliance MF and Vankrangee entered into a tie-up to distribute the former's mutual fund products in under-served areas.

According to experts, in an industry dominated by fund houses that are backed by large banks, such tie-ups can help in improving the competitive landscape. More than 60 per cent of the assets managed by top-five fund houses belong