AMCs are, at times, weighed down by the number of schemes they offer or are under management (in some instances they are more than 200). This may result in a negative impact on the operational efficiency and profitability of the AMCs. The NFO boom that happened a few years ago has left behind a proliferation of schemes, some with overlapping objectives and investments. Yet, each scheme brings with it operational costs driven by regulatory, compliance and risk requirements. Overlapping schemes may be analysed and the possibility of merging overlapping schemes, or discontinuing such schemes or schemes with a less-than- optimal AUM.
