The Hindu Business Line : We will try to offer innovative funds

WE need to strengthen our brand," Mr Ajay Bagga, the new CEO of Kotak Mahindra MF, puts it simply when asked about his plans. More specifically, he refers to acquiring a more elevated rank among asset management companies in terms of an increased market share, a wider customer base and, importantly, higher profitability.

However, given the kind of competition prevalent among fund houses, that will be nothing less than an uphill task.

Excerpts:

Going forward, what can investors expect your fund to do?

Products will account for a key element of our strategy. We will try to offer innovative funds based on the feedback given to us by the market.

As things stand, we already manage a number of regular, standard products as well as a few special ones. The newly launched Kotak Global India, for instance, is in the second category because of its distinctive theme.

On another front, there are plans to expand geographically by establishing more points of presence. Also, the AMC has to run profitably, which will be a major criterion in the coming days. Our asset base, which stands at around Rs 6,000 crore at the moment, should reflect the initiatives that are likely to be taken.

What will be your equity strategy in the near future?

Let me tell you that we have by now used some of the recent declines in the market to buy. This has been done across our equity funds.

Coming to your point, some clarity has already emerged as far as national politics is concerned. The market is expected to react and we will take the right calls as soon as they are required. Significant developments are awaited in some sectors and there should be enough opportunities for professional investment organisations such as ours.

Do you have a view on Kotak Tech? Should this become more diversified?

This was among the very first issues that came up when I took over as CEO. I must concede that the scheme has, like its peers, suffered because of the changes that have happened in the tech sector. However, the tech story need not be ruled out so bluntly.

A number of technology companies have done well in the past and there is no reason to believe that some of them will not be able to repeat their performance in the future. This is not to suggest that there will be a major or immediate bounce-back. But the tech sector is currently full of developments.

We will have to give Kotak Tech a chance, at least for some more time, before drastic modifications in its investment objectives can be ordered.

Any new schemes in the offing?

Yes, we are going ahead with a Fund of Funds, for which we had sought SEBI's permission some time ago.

There will also be what has come to be popularly known as an `opportunities fund'. This will be a product that will take deft calls and realign its portfolio depending on the conditions prevailing at any given point.

We are also considering an index fund, which will allow us to provide one more choice on the equity side. Our view is that some investors may like index-based options despite all the positives going in favour of actively-managed growth funds.

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We will try to offer innovative funds