Edelweiss launches MF; ASK to follow

Written by Chirag Madia | Sai Prasan | Mumbai, Aug 26 | Updated: Aug 27 2008, 06:30am hrs
Edelweiss has launched an asset management company (AMC), taking the total tally of mutual fund houses in the country to 35. ASK Group also is setting up an AMC soon, and has applied to the Securiteis and Exchange Board of India (Sebi) for the same.

The newly-formed Bharti AXA Mutual Fund has launched a liquid fund in the debt segment, and will offer an equity fund in the first week of September. The fund house has a daily systematic investment plan (SIP) in which the investors can park an amount as low as Rs 100 on a day. These fund houses started their operations when the mutual fund industry shed 7% of the total assets under their management, and another 6% in June.Sandeep Dasgupta, CEO, Bharti AXA MF said only 4% of the total household savings are invested in the market in India compared to the double digit figure in developed economies including in the US. More and more newer players have the opportunity to grow as the investors awareness about mutual funds increase, he said.

Edelweiss Mutual Fund has introduced liquid and liquid-plus funds this week.After the launch of the new fund offer, Rujan Panjwani, president, Edelweiss AMC said, There is a vast scope for development (for mutual funds) because the retail investor base is still untapped.

Edelweiss Mutual Fund plans to start investor education programmes. In a reply to a question on the erosion of the assets managed by mutual funds, Jimmy Patel, chief executive officer, Edelweiss MF, said, This is only due to the volatility in the markets. I dont think inflows into mutual funds have decreased. Once the markets start going northward, we will see the assets of the fund houses also increasing.