At a time when foreign firms are exiting Indian asset management business, a few domestic players are gung ho about starting mutual fund business.
Two new domestic players – Yes Bank and Mahindra Finance are likely to foray into asset management business soon. While Yes Bank has received RBI nod to set up an AMC, Mahindra group has formed its senior management team to set up their AMC.
Incidentally, both Yes Bank and Mahindra Finance are mutual fund distributors. AMFI data shows that Yes Bank and Mahindra & Mahindra Financial services have assets under advisory of Rs.678 crore and Rs.1,552 crore respectively as on March 2015.
In a press release, Yes Bank said that it will seek SEBI approval to set up MF business soon. The bank has said, “Yes Bank AMC will leverage the bank’s distribution network for customer acquisition, and provide customers a seamless digital experience for their investments and savings solution. The bank will simplify and integrate ‘manufacturing to distribution’ of equity and debt investment products for all its customers. The AMC will also gain from the bank’s expertise in investment advisory, wealth management solutions, debt capital markets, its significant and growing customer base & distribution network, and overall execution expertise, to build a large and profitable fund management franchise.”
Meanwhile, Mahindra Group has already approached SEBI for a license. A source privy to development told Cafemutual that the company is awaiting SEBI approval. However, the company has started working on setting up an AMC business. In fact, the company has already deputed V Ravi, Chief Financial Officer of Mahindra Finance and recruited Jatinder Pal Singh (ex-Executive Director of Morgan Stanley) in its senior management team.
