 "mutual fund")
A host of new mutual fund (MF) players are set to enter the Rs 68-trillion industry in 2025 as the Securities and Exchange Board of India (Sebi) has issued several partial and final approvals in the past few months.
There are now at least six applicants either holding a licence or having in-principle approval. While Angel One and Unifi Capital have obtained the final licence, four applicants — Jio BlackRock, Capitalmind, Choice International, and Cosmea Financial Holdings — have received in-principle approvals.
The in-principle approval from Sebi is a go-ahead from the regulator to set up the mutual fund business, which includes putting infrastructure in place and hiring key personnel. Sebi inspects the progress after six months. The final licence is issued if the applicant meets all the criteria.
If all four applicants with in-principle approval manage to launch their first fund this year, 2025 will mark the entry of a record six fund houses. In 2023, five new names entered the MF industry, but three of them entered through acquisitions.
In addition, IndusInd International is also expected to complete the acquisition of Invesco MF this year.
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 "Mutual Funda")
 "mutual funds")
The growing investor interest in MFs has led to the entry of multiple new players in recent years. The new entrants include portfolio management services (PMS) firms, fintechs, financial services distribution firms, and other financial services firms.
Some of the players with in-principle approval are nearly halfway through the six-month preparation phase. The Jio BlackRock asset management company (AMC), one of the most-awaited fund houses, recently appointed George Heber Joseph as its chief investment officer (CIO). Hiring an experienced CIO is one of the criteria for securing the MF licence.
While some of the new entrants, like Jio BlackRock, are expected to focus on all segments — active, passive, smart-beta — of the MF business and offer products across the equity, debt, and hybrid space, there are others who plan to stick to one segment or dedicate most of their efforts to a single category.
Angel One MF will only offer passive funds.
Two of the players awaiting a final licence, Capitalmind and Cosmea Financial Holdings, have stated that they will focus on factor and quantitative investing.
“With our investment in cutting-edge technology and partnerships with global leaders like WisdomTree, we aim to redefine investment solutions for Indian investors. Our focus on quant and smart-beta strategies will provide innovative and data-driven approaches to wealth creation,” said Sam Ghosh, founder and chairman, Cosmea Financial Holdings.
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 "Two of the largecap-oriented mutual fund (MF) offerings — flexicap and largecap funds — witnessed a spike in investor interest in October amid a fall in the equity market.")
 "Equity Mutual Fund")
 "mutual funds, investors")
 "SEBI")
