Inside the David vs Goliath battle in India’s mutual fund industry

Subscribe to enjoy similar stories.Mumbai: For Mumbai-based tech professional Ketan Madhav, weekends are reserved for a subject he pursues with almost religious zeal—food. Every Saturday, he and his friends pick a newly opened restaurant and work their way through a smorgasbord of options, ranging from coastal Indian fare to exotic cuisines from faraway lands.

For outlets they truly like, they dedicate an entire month to sampling as much of the menu as possible.“This keeps us busy for months. We never have to wonder what to do over the weekend,” he said.But this abundance of choice, while delivering gastronomic delights, creates a dilemma in another far more important area—investments.“Every week we hear about a new fund house or scheme being launched.

Just when I narrow down on one option, another comes along that looks even more attractive,” he said. “In theory, you would want to study fund performance, investment style, risk profile and how well it aligns with your financial goals.

But in practice, very few people have the time or expertise to do all that consistently.”So Madhav ends up relying on simple cues like rankings on third-party websites, social media chatter, or recommendations from friends. Then, he hopes for the best.Madhav is not alone.

India’s rapidly expanding mutual fund universe, fuelled by a surge in retail participation and an explosion of new product launches, is leaving investors spoilt for choice. From passive and thematic funds to sector-specific and factor-based offerings, asset managers are racing to carve out niches in an increasingly crowded market.For investors, while the sheer variety promises more opportunities, it raises the risk of confusion, duplication and impulsive investing driven