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Our Bureau

Eyes 150% rise in AUM

Hyderabad , March 8

Bullish on the growing opportunities in the equity markets, JM Financial Mutual Fund, part of the JM Financial Group, has chalked out an aggressive business growth strategy eyeing a growth of 150 per cent in assets under management (AUM).

From the current level of Rs 4,000 crore of AUM, the asset management company (AMC) expects to reach a level of Rs 10,000 crore of AUM by the year-end, its Senior Vice-President and Head, Sales & Marketing, Mr Prabal Nag, said.

Addressing newspersons here on Wednesday, Mr Nag said from predominantly debt assets management, the company has been consciously shifting towards equity assets, striking a balance between debt and equity assets.

Debt assets accounted for nearly 80 per cent of the company's Rs 4,000 crore of AUM, he said.

"We are gearing up to aggressively launching equity funds this year. So far, we have lined up four equity funds for the current year and the first one - JM HiFi Fund - has been launched on February 20. We are planning to come out with new fund offer (NFO) of Value Fund sometime by April-end. The other two equity funds are Arbitrage Fund and Thematic Fund," Mr Nag said.

JM Mutual expects to raise around Rs 500 crore through the NFO of HiFi Fund.

The company proposes to come out with fixed maturity plans almost every month and hopes to raise anywhere between Rs 300 crore and Rs 500 crore from each such plan, Mr Prabal Nag said.

Stating that the banking distribution channel has been playing a significant role in mobilising funds in the NFOs, Mr Nag said his company expects around 30-40 per cent contribution from banking channel to the NFO of HiFi Fund.

While the average contribution of banking channel to JM Mutual's AUM is currently at around 20 per cent, the company predicts it to significantly grow in the days to come to over 40 per cent.

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