Uncertain global market conditions and increasing competition in Indian mutual funds industry are reportedly behind the decision to sell out.
SBI Mutual Fund is likely to buy Daiwa’s mutual fund schemes for an undisclosed amount, said a source privy to the development. Though there is no official announcement, the deal was confirmed by senior officials of both SBI MF as well as Daiwa MF on the condition of anonymity.
Due to uncertain global market conditions, increasing competition and weak macro-economic indicators are factors that have made Daiwa MF take this decision to sell its mutual fund schemes to SBI MF, said a senior official of Daiwa MF.
Daiwa MF is a subsidiary of Japan’s second largest brokerage firm Daiwa Securities Group. In India, Daiwa MF started its operations in February, 2009. It manages AUM of Rs 266 crore as on March 31, 2013. Daiwa’s AUM declined by 50 percent compared to the previous quarter.
SBI Mutual Fund manages AUM of Rs 54905 crore as on April 13, 2013. It is the sixth largest in terms of AUM.
