Why sub-brokers are going down and forign MF exiting India

I was going through on my my favourite blog, when I ran into this article. Wonderfully technology is on creative destruction. So many sub-broker are out of business in spite of Sensex jumping 28% in 2014.

On the MF part:

Given the buoyancy in the capital market and a favorable long-term outlook, what is triggering such exits? At a macro level, experts say the slowdown in the developed market and new capital requirement back home have made foreign entities review their business plans. Besides, the strategies adopted by the latter have failed to click in the Indian market, typically where smaller fund houses have struggled to attain reach and profitability.

Experts believe ‘brand connect’ is important in a trust-business such as fund management. Most large fund houses, such as HDFC MF, ICICI Prudential AMC, Reliance MF, Reliance MF, Birla SunLife MF and SBI MF, have the backing of large banks or financial institutions, giving them reach and understanding, they say.

There are seriously the niche where we as Indian outsmart MNC hands down.

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