As I financial expert, I have to deal with the queries regarding the profitability of investment often. As the Indian market is flooding with options like IPOs stocks and Mutual fund, it has become really difficult to advise on the most profitable investments. For this, I always favour the idea of remaining updated with the latest Industry news.

The mutual fund industry in India should brace up for embracing outsourcing of activities such as accounting services to compete with the global giants. With the entry of more and more players in the industry, the demand for effective accounting services is likely to rise. In such intense and fierce competition, the fee rates are destined to drop and this should be the right time for the mutual fund houses to seriously consider outsourcing concept.

This fact was substantiated by the recent report. The recently released 'Indian Mutual Fund Industry: Sustaining Growth in a Maturing Market' advocated to replace the present net worth criterion of Rs. two crore to Rs. 10 crore for obtaining mutual fund license and start business in India. This, increased deposit would ensure that only major and serious players, capable of sustaining over long term business, are able to operate in the industry. There is also a case for re-consideration regarding the maximum cap on the amount of expenses that can be charged to a scheme with the maturity of the industry.

The real problem that Indian mutual fund market is facing is the the shortage of skilled human resources. The demand and supply gap of effective talent in the Indian mutual fund industry should also be bridged and industry players through AMFI should tie up with management colleges to offer programmes related to financial services in general and the mutual fund in particular. Pointing the challenges in the Indian mutual fund industry, the report also suggested that there should be a reduction in the mounting costs of operations in India. It also said that the all time high real estate prices is denting the operating margins quite severely.