Union Mutual Fund, a fund house which is sponsored by state-owned lender Union Bank of India, plans to more than double its overall AUM to Rs 9,000 crore in three years time. For achievement of the goal, the fund house is relying on expanding the company's investor base and the launch of new products.
Union Mutual Fund, a fund house which is sponsored by state-owned lender Union Bank of India, plans to more than double its overall AUM to Rs 9,000 crore in three years time. For achievement of the goal, the fund house is relying on expanding the company’s investor base and the launch of new products. The fund house is ranked 29th in terms of asset under management (AUM) at the moment, with an overall AUM at around Rs 4,000 crore.
“At Union Mutual Fund (Union MF), we are looking at more than doubling the company’s assets under management to around Rs 9,000 crore over three years’ time,” Union Asset Management’s chief executive G Pradeepkumar told PTI here today. “We will achieve the target by expanding the company’s investor base and the launch of new products,” he said. According to Pradeepkumar, “To cross the company’s overall AUM at Rs 5,000 crore will be our immediate target which we are likely to achieve within 6 months from now.”
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At the moment, the company has got 10 product offerings which include four products under equity category comprising one close-ended fund, one asset allocation fund and five products under fixed income with three open-ended ones and two close-ended ones. The fund house is looking at the launch of four new funds in the current fiscal.
“In our bid to expand our product portfolio, we plan to launch four products in the current fiscal which include two products falling under equity category and one each from categories like fixed income and hybrid,” Pradeepkumar said, adding “we are looking at the launch of one pure large cap fund under equity category.” Union MF had concluded a new fund offer of a close ended scheme in February through which it had mopped up funds amounting to Rs 300 crore. Interestingly, 71 per cent of the investors of the fund were first timers.
Citing the reason for the company’s plan to launch a Capital Protection Fund, he said that there was a great opportunity for relatively conservative investors. In case the market goes down, your money was expected to be protected while if the market goes up, you could get 60-70 per cent of the upside. Talking about total folio count growth plan of the company, he said “we are looking at increasing total number of investors to 2 lakh, from 1.2 lakh at present, by the fiscal-end.”
Around 44 per cent of folios for the company comes from B-15 cities at present, which also means that more than 30 per cent of its business is coming from those cities. Apart from it, the company has got its sales presence in 48 places across the country, he said. The fund house is looking at doubling its SIP book in a year’s time.”Currently the company’s SIP book has got 50,000 folios which we want to increase to 1,00,000 in a year’s time,” he said.
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On the impact of exit of the company’s foreign partner, KBC in September last year, Pradeepkumar said that it has not affected the company’s business at all. At Union AMC, he said, most of the team stays unchanged, hence, business as usual.