Even after several foreign players exiting Indian asset management business in the last few years, Mirae Asset Global Investments (India) plans to remain a foreign player in India. After launching its first equity scheme in 2008, Mirae Asset has managed to grow in the past eight years largely due to its strong fund performance, industry participants said.
Last month, Mirae Asset crossed assets under management (AUM) of R6,000 crore out of which R5,600 crore is in their equity schemes. “No promoter starts to business to close it, he starts to sustain in the market. Apart from tracking scheme performance, one should also look at balance sheets of mutual funds. The challenge earlier was to build a sustainable balance sheet, this is our fourth year of breaking even and that changes everything from the promoters perspective and we plan to remain a foreign player in India,” said Swarup Mohanty, CEO at Mirae Asset Global Investments (India).
Mirae Asset launched its first equity scheme in April 2008 known as Mirae Asset India Opportunities Fund and since then it has given compound annual growth rate (CAGR) returns of 16.64% and is benchmark against BSE 200. Later on the fund house came out with debt funds, international fund and liquid funds. In 2015, they had launched Balanced Fund and Tax Saver Fund to complete their product portfolio.
“Mirae Asset has managed to register profits, even as many other established player continue to mount losses. Their focus on fund performance and giving positive returns even during the volatile times have been one of the major factor for their success,” said a CEO of another fund house on condition of anonymity. Earlier we had seen Pramerica AMC buying out assets of Deutsche AMC. In the past we have seen other foreign players like ING Investments, Morgan Stanley Mutual Fund, Fidelity mutual Fund and Daiwa Mutual Fund among other exiting Indian markets.
According to the data from Value Research, Mirae Asset has registered net profit of R2.13 crore in 2015-16 as against R1.58 crore in 2014-15. Senior officials in the fund house said that, with rise in equity markets and performance of equity schemes, they are getting around R50 crore every month through systematic investment plans (SIPs).
In the last few years there has been rise in number of SIPs and now industry gets around R3,800 crore.In the days to come, Mirae Asset also plans to come out with the bond fund. “We will file for our proposed fund, Dynamic Bond Fund with the regulator soon and we will launch it once we get the approval for the product from Securities and Exchange Board of India (Sebi),” said senior officer.