Mahindra Asset Management Company today launched an open ended scheme, mainly aimed at rural and semi-urban markets, as it looks to tap ample liquidity in banking system post demonetisation.
The company’s scheme Mahindra Mutual Fund Dhan Sanchay Yojna seeks to generate long-term returns through investment in equity and debt.
The New Fund Offer would open on January 10 and close on January 24. Thereafter, the scheme will reopen for continuous sale and repurchase from February 8.
“This product makes lot of sense at this point of time and because of demonetisation lot of money has come into the bank. We are eyeing to tap this opportunity and asked our MF distributors to educate people about the investment in a mutual fund product,” Mahindra AMC CEO and MD Ashutosh Bishnoi told reporters here.
It seeks to generate long-term returns through investment in equity and equity related instruments, arbitrage opportunities, debt and money market instruments.
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“We at Mahindra AMC have chosen to reach out to the underserved markets to tap into savings and investment potential beyond urban India in the semi-urban and rural markets.
“Our approach is based on educating the potential customer in our priority markets and explaining the investment opportunities to them in their own language starting with product names,” Bishnoi said.
Mahindra AMC, wholly-owned subsidiary of Mahindra and Mahindra Financial Services, received markets regulator Sebi’s approval in February last year to set up mutual fund business.
Bishnoi is upbeat on the industry performance in this year while expecting investment from new investors to fuel the growth of the sector.
The total AUM of all 43 active fund houses put together soared by Rs 3.52 lakh crore, or over 26 per cent, to a record Rs 16.93 lakh crore at the end of December 2016 from Rs 13.41 lakh crore in December-end 2015.