Analysis of the intensity of compe tition inthe indian mutual fund industry

Mutual funds are currently offering a large assortment of options to investors such as income funds, balanced funds, liquid funds, gilt funds, index funds, Exchange Traded Funds, sector specific funds. Such a diversification of funds and schemes is mainly due to the rising competition among the Asset Management Companies (AMCs). After the reforms, mutual funds have amplified its resource mobilization especially by the private sector and also the number of AMCs and its types of schemes has improved over the years. This background motivated the need to explore more about the competitiveness of the Indian mutual funds industry. For this the famous Herfindal — Hirshman Index and Four Firm Concentration Ratio has been used. Through all this it can be concluded that in the period starting from 31^st March 2010 upto 31^st March 2015 HHJ values have increase which signify an increase in the concentration levels ofpower and hence a fall in the competition both in the indurtry as a whole and amongst the different types of schemes. All this can be attributed that to the overpoering dominating topf 5 AMC operanting here.