How was 2015 for you?
It was a good year for Mirae Asset. Our AUM almost doubled in 2015. We started the year with AUM of Rs.1,677 crore, which now stands at 3,060 crore (as on 30th December). We successfully launched two NFOs this year (Mirae Asset Prudence Fund and Mirae Asset Tax Saver Fund).
The growth in AUM was supplemented by a stellar increase in investor folios from 89,000 to approximately 1.60 lakh folios. It was heartening to see that 60,000 of these are SIP folios. Our SIP book has also doubled in 2015, which is Rs. 25 crore per month. These numbers are testament to the fact that investors and distributors appetite for Mirae Asset has increased substantially. We hope to continue this growth momentum in 2016 as well.
Mirae Asset Group launched two offshore funds in Korea and both these funds have seen good growth. Their combined AUM has crossed $ 50 million. The group plans to offer more India based products to foreign investors and invest more in the Indian business next year.
What helped you achieve a healthy growth this year?
This all-round growth is a result of team effort. The investment team has been the main pillar of our organization. The sales team has made good inroads in the distribution market. Our sales growth in equity has grown substantially. We launched two NFOs successfully with cost efficient spends and I attribute this success to my team.
How do you plan to sustain this growth in 2016?
To sustain the growth momentum, our key focus will be on the following areas:
- To build strong relationship with distributors and expand to untapped markets.
- Invest in infrastructure to provide transaction and communication ease for investors and distributors.
- Focus on brand building
What kind of challenges did you face and how did you overcome them?
In the last two years, the mutual fund industry has seen a number of foreign AMCs exit. Also, the regulatory environment has been challenging for smaller AMCs. We have been ahead of the curve by having a cost efficient model during the year 2011-13 (when the Industry was going through tough times). We stuck to the right ways of doing business by building a good track record. We did not adopt hank-panky ways to grow AUM. When the market improved in 2014-15, we were the ones to benefit. We hope to grow the India business and become one of the leading asset management companies in India in the years to come.
What are the key learnings for you this year?
I have been in India for six years now and seen the markets and the MF industry go through a lot of challenges. However, I believe if you have a long term outlook, stick to your principles, good things will happen. Nothing is impossible.
