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With the industry still reeling under effects of new regulations (entry-load ban) and a consequent paradigm shift in business model (where distributors have to earn advisory fee from investors), the pressure on capital means industry growth would remain muted.
CEO pay for the mutual funds (MF) industry could be highest at Rs 2.5 crore while smaller asset management companies also pay Rs 45 lakh. According to Mafoi, a chief investment officer (CIO) gets around Rs 70 lakh to Rs 1.8 crore in compensation. The head of equities, another crucial position in the MF investment team, fetches around Rs 40 lakh to Rs 1.2 crore. The pay for head of fixed income is slightly lower at Rs 30 lakh to Rs 1 crore.
On the administrative side, the compensation packages for chief operating officer and chief marketing officer are around the same bracket starting from Rs 30 lakh to Rs 1.2 crore levels.
According to the MF report, which was prepared by Mafoi with Indian Chamber of Commerce, the challenge for asset management companies may be to show growth to people in the near-term. Many of the new entrants, who got their MF licenses in 2008 and 2009, have already taken advantage of the downturn to attract talent.
But thanks to the uncertainty in the market, employee turnover in most companies reduced drastically over the past 12 months, the report stated. Like passive job-seekers were not showing much interest in new opportunities, active job-seekers offers were not that lucrative in terms of pay-out, Mafoi said.
"The MF industry in India today is at a threshold of some sorts. While the outlook remains extremely positive in terms of assets under management - the ability to maintain profits, building investor trust, evolving innovative systems & products and building a respectable brand would distinguish the front-runners from also-rans," Mafoi said in the report.
 Limited.JPG)
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