The Hindu Business Line : Sahara Mutual rolls out major expansion drive

A TARGET of recruiting at least a hundred employees, to be spread over a couple of dozen new offices, makes Sahara Mutual Fund the largest poacher in the asset management industry at this moment.

The MF, which was First India Mutual Fund till recently, has rolled out a major expansion drive that will see, besides addition of personnel, introduction of new schemes, including a few niche products. For starters, it has homed in on a mid cap fund and a monthly income plan.

Sahara MF, said Mr R. Balakrishnan, Chief Executive, has already concluded restructuring the board of its asset management company. The new faces on it include Mr Subroto Roy, promoter of Sahara India Parivar, and Mr Sanjiv Kapoor, an accounting professional.

"The changes (in the AMC board) reflect the commitment of the new shareholders", he added.

The fund has also ushered in a few other modifications at the very top of its operational structure. It has for instance taken in a Chief Investment Officer - Mr Naresh Kumar Garg - who had been with UTI since 1989 and has handled a number of functions at the public sector fund house. This is, incidentally, the fund's first appointment of a CIO.

The MF will now expand its reach by setting up offices in 24 new locations; it is currently present in only five relatively important centres. "Our 100-odd new people will be mostly responsible for marketing and investor relations. There will soon be fresh products to offer," Mr Balakrishnan observed.

The proposed mid cap fund (Sahara Dynamic Mid Cap) will pursue a `dynamic' strategy, which will enable it to shift with ease between various classes of assets. This characteristic, the MF points out, will make it the first mid cap scheme with such an active investment style.

Sahara MF, which is looking at increasing its assets under management, currently has a standard fare - diversified equity, income, liquid and gilts. Besides, there is an equity-linked savings scheme, Sahara Tax Plan.

A few niche offerings, such as an index fund, will be considered later. An advertisement campaign will also be unveiled shortly, Mr. Balakrishnan indicated.