Mergers and consolidation may not happen in the mutual fund industry after the market regulator directed reclassification of various schemes at a time when cash holdings of fund houses are falling according to a top official. The official also said PPFAS is planning to come out with an equity-linked savings scheme (ELSS) sometime next year, as well as a fixed income scheme in the future. At the end of last month, PPFAS Mutual Fund’s AUM stood at Rs 1,3333.97 crore and the cash-plus-arbitrage was at 28.42 per cent. There should be some uniformity in the remuneration rates for financial intermediaries so that arbitrage opportunities are reduced and investors can take a proper decision.
‘Mutual fund M&As will cease after SEBI directs reclassification
