India Infoline plans to enter the MF business with Index funds and ETFs; sees great long-term potential
India Infoline Ltd (IIFL) plans to enter the mutual fund business with index funds, revealed a company official. This would be followed up by the launch of ETFs and debt funds. IIFL believes that there is a long-term potential in this industry.
It has received a final approval from SEBI to launch the mutual fund and plans to file the product offer document with the authority within a month’s time.
SEBI has reportedly given a nod to three new entities - Indiabulls Financial Services, India Infoline Ltd and Union Bank of India-KBC to enter the mutual fund business. Indiabulls, Indiainfoline and Union Bank had applied for mutual fund license in 2007, 2008 and 2009 respectively.
Currently there are 23 mutual fund applications pending with SEBI. The regulator is very selective in granting the license in this space.
The mutual fund industry is currently growing at 9% with Rs 7.07 lakh crore of assets under management.
