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Stock broking company, Angel One has received in-principal approval from SEBI to launch mutual fund business.
In a regulatory announcement, the company said, “This is to inform that the company has received an in-principle approval from SEBI vide their letter dated February 8, 2023, for sponsoring a mutual fund. Accordingly, the company would be setting up an asset management company and the trustee company, in accordance with applicable SEBI Regulations and other applicable laws.”
Angel One applied for MF licence in September 2021. The company is likely to offer only passive funds.
In an earlier interaction with Cafemutual, Prabhakar Tiwari, Chief Growth Officer, Angel Broking said that the company will be using the rule-based investment approach to offer smart passive products to investors. He had said, "A combination of our smart beta funds and passive ETFs would cover the complete investment needs of any investor at far lower costs, enabling new customers to experience equity with ease."
Other players who have received in-principal approval but yet to start MF business are Bajaj Finserv, Helios Capital, Old Bridge Capital and Zerodha Broking.
There are several factors that have resulted in the enhanced interest in the mutual fund business in the past few years. One is the projections of huge growth in the future given the under-penetration at present.
