The asset management company has received its license early this week.
Parag Parikh Financial Advisory Services (PPFAS) has recently received its approval from SEBI early this week to start their mutual fund business. The company had approached the regulator over two years back for launching their mutual fund.
The company is planning to enter the mutual fund business with a diversified equity fund, shared a senior official of the company. Currently, the fund house does not want to launch a range of funds but wants to concentrate on one fund. It will be approaching its existing clientele after initiating the MF business and will be charging 2 percent asset management fee.
In terms of distribution, currently the investment advisory firm has a strong in-house sales team and a few IFAs who are empanelled for their portfolio management business. The company is planning to empanel more IFAs to expand their distribution channel for their asset management business. It will not pay any upfront commission to distributors for selling their NFOs and would pay trail commission according to industry standards, shared a senior official of the company.
The firm reaches up to masses through online campaigns for their existing business and it also plans to leverage their expertise in the online space for the MF business too.
