The pipeline of prospective mutual fund players remains substantial despite rapid industry expansion, with nine entities awaiting regulatory approval from the Securities and Exchange Board of India (Sebi). As of June 30, 2026, eight applicants were awaiting in-principle approval, while Marcellus Mutual Fund had received in-principle approval and was awaiting final registration. During the April-June quarter, three new entities — One Finance, Northeast Broking Services and Ashika Stock Services — filed applications, according to reports from Business Standard.
India now operates 55 operational fund houses that collectively manage ₹82.2 trillion in assets, as reported by Business Standard. The surge in mutual fund interest has been accompanied by a more than three-fold increase in industry assets since the onset of the pandemic, driven by sustained equity inflows, record systematic investment plan (SIP) contributions and growing retail participation. This expansion reflects the industry's strong fundamentals and continued attractiveness to new market participants.
According to Sunil Subramaniam, founder and CEO of Sense and Simplicity, the attraction of new players to the MF industry is driven by multiple factors, with the biggest opportunity being the industry's low penetration. As reported by Business Standard, India has just about 60 million unique MF investors despite a population of 1.4 billion, while mutual fund assets as a share of GDP are only about a quarter of the global average. Entry barriers remain relatively low, with minimum capital requirements of ₹50 crore for active fund houses and ₹35 crore for passive-only players.
According to experts cited by Business Standard, the introduction of Specialised Investment Funds (SIFs) has encouraged several portfolio management services (PMS) and alternative investment fund (AIF) managers to seek mutual fund licences to guard against potential client migration. This strategic positioning reflects the evolving landscape where traditional asset managers are expanding their capabilities to capture broader market opportunities and maintain competitive advantages in the growing mutual fund sector.
