A matter of size

Fidelity Investments’ decision to exit the Indian mutual fund market ought to make the market regulator, SEBI, sit up and take notice. Although quite a few foreign financial firms have either sold off or reduced their stakes in their Indian mutual fund arms since the 2008 global economic crisis, Fidelity’s move is significant, as it is not linked to the restructuring plans of the parent. As one of the world’s largest mutual funds, Fidelity may also not have lacked the deep pockets or staying power to withstand competition. The exit is, therefore, a sign that it finds the Indian market for asset management unattractive.


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