Goldman Sachs, one of the top 10 assets managers globally, is likely to launch mutual fund business in India in 2011
Mumbai: Goldman Sachs, a global investment bank, is set to launch its mutual fund business in India in 2011, the Business Standard reported quoting unidentified people familiar with the Goldman’s plan.
Goldman Sachs had set up Goldman Sachs Asset Management (India) Private Ltd on August 26, 2008. Goldman Sachs Asset Management, which is among the top 10 global asset management companies, had to delay its plans to launch operations in India due to the global economic crisis.
Prashant Khemka is the Chief Executive Officer (CEO) as well as the Chief Investment Officer (CIO) of Goldman Sachs Asset Management (India) Private Ltd. Before moving to Mumbai in 2006, he was a senior portfolio manager and co-chair of the investment committee in the Goldman Sachs Asset Management Growth Equity team in the US for six years.
There are 41 mutual fund houses operating in India. Goldman Sachs and Aegon Asset Management Company Pvt Ltd are the two fund houses which have received registrations as mutual funds but are not operational yet.
“Goldman is shaping up strategy to launch the Indian asset management business,” a person in the know of the plans said on the condition of anonymity, the newspaper report said.
More foreign asset managers are now getting active in India. France’s Natixis Global Asset Management last week announced it will acquire a 25 per cent stake in IDFC Mutual Fund. In 2009, Japan’s Nomura bought a 35 per cent stake in LIC Mutual Fund and US-based T Rowe Price bought a 26 per cent stake in UTI Mutual Fund.
The Indian mutual fund industry’s assets under management (AUM) total Rs 6,73,186 crore, which have more than doubled in the last four years. Nearly 60 per cent of the AUM is held by the top five fund houses.
