The Indian asset management industry has registered a strong growth, driven by robust capital markets and record equity flows in the industry. This impressive AuM growth has also translated into surge in profitability over the last three years, with record levels of profit pools in FY 17. Is this a new normal of profitable growth, or this is a short-term phenomenon which will be challenged by the evolving industry landscape?
The outlook for the industry is positive, but there are challenges that need to be addressed to ensure sustained profitability. The magnitude of changes underway in Indian asset management could demand a prompt response from the industry. To win in this new environment asset managers will need to revisit their business models and re-imagine their value proposition amidst six key structural trends.
This is one of the key findings of this CII-McKinsey Report released at the CII Mutual Fund Summit held on 12th December 2017 in Mumbai.