New Delhi, Aug. 11 -- A mix of tax policy shifts, product innovation and untapped potential is redrawing India's asset management map, spurring a rush in the mutual fund industry. Interestingly, not all are fresh entrants, but existing players in the ecosystem-portfolio managers, alternate investment funds (AIFs), stock brokers, and even investment bankers-who are now stepping in.

The number of mutual funds that were stagnant for the last five years, saw a sharp rise to 53 as of 9 August. As per data from Securities and Exchange Board of India (Sebi), the number of fund houses were hovering around 45 between FY19 and FY24, and saw a sudden rise to 53 in FY25.

Key factors include a change in short-term capital gains tax (STCG) bothering ...