Media reports said that SBI Mutual Fund, India's sixth largest MF company, will acquire the Rs 266 crore worth assets of Daiwa for an undisclosed amount.
Economic Times quoted SBI MF's Managing Director and CEO Deepak Chatterjee as saying "This acquisition will help SBI Mutual Fund acquire a unique client base, which will increase its penetration in retail and HNI space. Daiwa AMC has built robust relationships with its distributors and SBI MF intends to leverage on those relationships to acquire new retail customers."
Analysts said that Mutual Fund industry is at the door of consolidation phase now and only bigger and stronger players will continue to exist amid higher marketing and distribution costs in the industry.
Currently, the industry has 50 MF players while just 10 of them account for 75 per cent of the market share.