L&T MF aims to be among the top 5 AMCs after the acquisition.
L&T Finance has acquired the Indian mutual fund business of Fidelity Worldwide Investment. Put together, the two fund houses would rank 13th by overall AUM size currently. The acquisition is subject to SEBI and Competition Commission of India approval.
L&T Mutual Fund aims to be among the top 5 mutual fund houses. But the biggest challenge in front of L&T is to ensure that they retain and grow the equity assets as it has so far been a predominantly debt fund house.
L&T Mutual Fund will retain the marketing and equity fund management team till integration which is expected to take at least three months. The L&T management indicated that the valuation was in line with the recent transactions. However, no specific figures were given.
The overall AUM of L&T was Rs 4,616 crore (quarter ended December 2011) while Fidelity managed an AUM of Rs 8,881 crore (quarter ended December 2011) of which 68% was in equity assets.
