The Indian funds management industyr has gone through a lot, volumesz static at INR 7.5 trillion for the six months of 2011. While a week ago there was movement (and argument ) on changing the direct applications modeel for the industry back to agency with a new commission structure of 1Rs 100 per application, it seems to be a split decision and unlikely to solve any crisis of funds in the industry. Equity funds have accretions in Jan - May but of $100 mln to $200 mln . Fixed income receives a lot of institutional funds but is a trifle limited by new RBI targeting of excessive money market funds making inter bank liquidity. 

Inspite of these factors, consultants/ funds industry outliers like Vanguard and Morningstar are unable to make traction or see a business opportunity of note in India as the expenses model and volumes expected even from bancassurance and direct applications are still different by almost two orders of magnitude than ETF players and specialist funds operating in US and Europe. Using the same differences and looking for an inexact harmonization is not going to take you closer to maturity but towards the same global instaboility that comes from larger prospectuses with inane disclaimers which hide the exacting leveraged strategies and other such short cuts like ponzi schemes of the west witnessed in the 2008 implosion. The seeming rant here however is only in response to such consultants and non Indian funds trying to find their way in to a lucrative market such as India by terming it young and immature.  

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