Recent global financial crisis had significant impact on mutual fund industry both globally and in Russia. Total Net Assets and number of funds under management shrank dramatically. In this paper we analyze delisting of mutual funds in Russia. In contrast to existing studies we employ a matching procedure in order to compare liquidated and survived funds. For each liquidated fund we find all similar survived funds by investment style and Total Net Assets. Liquidated funds are smaller, younger, have poor performance records, and suffer from large asset redemption. Most of the mutual funds in Russia are liquidated along with fund management company. We show that Russian management companies are young, suffer from capital shortage and from lack of economies of scale, which sharply increase a probability for them to be liquidated. Our results stress the need for Russian fund management companies to have sufficient capital in order to be able to survive short-term negative shocks. This may help to increase confidence in Russian mutual fund industry and, consequently, develop Russian financial market. During the period of present economic and financial turmoil Russian management companies experience difficulties, which lead to consolidation of the whole industry. Management company liquidations have negative externalities on mutual funds’ investors. Therefore we suggest mergers of unviable management company with healthy ones as the best way to consolidate the industry.