"By the end of March 2002, we would like to double our market share to 6.5 per cent. In line with this target, the fund is planning to launch four new funds and give thrust to a combination of debt funds targeted at the middle class people," SBI MF managing director Niamatullah told The Financial Express. An open-ended Monthly Income Plan (MIP), for which board and regulatory approvals were already obtained, would be launched shortly, while three other plans - Children Benefit Plan (CBI), index fund and closed-ended debt scheme - were on the drawing board and to be taken to the fund's board for approval soon.

MIP offering monthly, quarterly or annual dividend and positioned as a low risk scheme, also has an innovative feature - the investor would be allowed to withdraw a part of the principal amount in case no dividend is paid for any month. This move is intended to ensure liquidity and cash flow to investors during the life time of the product.

"Index plan may be based either on BSE Sensex or S&P CNX Nifty index, but most likely to be based on the latter. Its too early to announce this," Mr Niamatullah added. The promotional thrust next year would be on three debt funds having Rs 700 crore under management, covering various maturities and risk patterns. Already the MF free of non-performing assets (NPA) and that will come handy in pushing our products effectively in the market, he said.

Talks on to open counters in SBI branches
In line with Zurich and IDBI mutual funds, which have have set a trend by adopting mass marketing channels recently, SBI Mutual Fund has also initiated talks with its illustrious parent, State Bank of India (SBI), for opening its counters in latter's branches.

"We are in talks with SBI for opening counters in their specialised branches. Its impossible for opening counters at all the 9,000 branches of the bank," SBIMF managing director Niamatullah told The Financial Express.

Besides, the fund is also planning to beef up its network by adding five more branches to its existing 21 branches during the next fiscal and is in the process of introducing personalised index numbers for offering personalised services to customers and making the scheme and net asset value details on the website. The fund has an investor base of 15 lakh and managing Rs 3,000 crore of assets, excluding off-shore funds.