Mutual fund houses are working overtime to start consolidating their portfolio of schemes to ultimately have just one scheme with a specific investment objective or theme. Fund houses are saddled with multiple schemes with similar investment objectives or themes, launched as new fund offers (NFOs) earlier to swell assets under management (AUM).

The pace of consolidation is expected to gain momentum over the next three to six months as fund houses seek to merge schemes with small AUMs with similar schemes having large AUMs.

The 41 fund houses operating in the country have a total of 3,848 mutual fund schemes. The top 10 fund houses account for 1,994 schemes, or 52 per cent of the total number of schemes.