New Delhi, Nov. 2 -- In September, Canara Robeco Asset Management Co. Ltd (AMC), which manages the assets of Canara Robeco Mutual Fund, became the fifth prominent fund house to list on stock exchanges. ICICI Prudential AMC, the second-largest fund house by assets under management (AUM), could well be the next.

The business model of mutual funds is simple. The industry is regulated in terms of what it can charge customers-the management fee is usually a percentage of AUM. Thus, the higher the AUM, the greater the revenues. That's also why industry stocks fell this week when the regulator proposed an effective cut in the management fee. The challenge before AMCs is to grow their AUMs in a choppy market and amid intense competition, both am...