Mahindra AMC to use Mahindra Finance’s network for expansion

By: | Published: January 10, 2017 6:16 AM

Mahindra Asset Management Company, the latest entrant to the country’s mutual fund space, on Monday said it will leverage the extensive distribution network of Mahindra Finance to expand its footprints in semi-urban and rural areas.

Mahindra, Mahindra Asset Management Company, Mahindra Mutual Fund, Dhan Sanchay Yojna, investment, Ashutosh Bishnoi, Mahindra AMC, Mahindra Financial ServicesThe company is also keen on the eastern region, and plans to have 10 offices over the next one year. (Reuters)

Mahindra Asset Management Company, the latest entrant to the country’s mutual fund space, on Monday said it will leverage the extensive distribution network of Mahindra Finance to expand its footprints in semi-urban and rural areas.The fund house is aiming at increasing its assets under management (AUMs) to Rs 5,000-6,000 crore in the next two years from Rs 1,600 crore at present.Mahindra AMC (MAMCPL), the wholly owned subsidiary of Mahindra Finance, received Sebi’s approval in February last year to set up the mutual fund business.

MAMCPL chief executive and managing director Ashutosh Bishnoi said smaller markets were the focus area of his fund house, and the company would leverage Mahindra Finance’s wide presence to expand business in these regions. “Mahindra Finance has presence in 1,200 cities and 2.5 lakh villages across the country. We will put our people at its offices for selling mutual fund products. We will have access to its customers directly,” Bishnoi said.

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“At present, we are present in 40 cities. Our target is to be present in 80-100 cities in the next one year,” he said. For the first six months of its operations, the company will focus on the northern and the western regions, which are traditionally good markets for mutual fund business.

The company is also keen on the eastern region, and plans to have 10 offices over the next one year.

The fund house expects big gains in rural areas from the government’s demonetisation move, as more money have been channelised into the banks and the number of rural people with bank accounts has also soared in the last two months.

The company also expects greater mutual fund penetration in rural areas if online payment gets a fillip after the launch of the Centre’s flagship digital payment application, BHIM.

Bishnoi was in Kolkata to launch the “Mahindra Mutual Fund Dhan Sanchay Yojana”, an open-ended equity scheme. “We have sought Sebi’s approval for launching two new products. Six more products are currently on the drawing board,” Bishnoi said.

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