Speaking to The Financial Express, Vivek Reddy, chief executive of the fund said that the plans which look at the possible growth prospects and the infrastructure required for achieving it in terms of technology, people, distribution network, investor service, data bank etc would be presented to the shareholders soon. He, however, refused to reveal the quantum of investment that would be required to be made.

KPMF currently has an equity of Rs 10 crore and further capitalisation had been held up as HC Kothari group, which had jointly promoted KPMF as India's first private sector mutual fund, was strapped for cash. The group's flagship company Kothari Sugars and Chemicals Ltd is before BIFR and its other venturesincluding Kothari Petrochemicals are not doing well.

The fund's corpus had grown from Rs 300 crore to Rs 800 crore without any increase in equity, Vivek said. Pioneer group had declared its willingness to bring in the required equity, but was awaiting its partner to arrange the funds.

Kothari group, which is in the process of raising money for reviving its ailing companies decided to opt out of Investment Trust of India (ITI), one of the oldest NBFCs in Chennai. Since its investment in KPMF was routed through ITI, it exited from mutual fund industry.

KPMF has more than 3.2 lakh retail investors and is one of the leading private sector mutual fund in the country. It was the first fund to launch sector specific schemes and introduce cheque writing facility for money market mutual fund investors.