The Hindu Business Line : `Potential in the Indian market is immense, just immense... '

The other day we had the chance to meet Mr Krishnamurthy Vijayan, the CEO of JP Morgan Asset Management, the global colossus that has just flagged off its Indian venture with a diversified equity fund. While there was a lot of catching-up to do - we were meeting after months - we did get treated to plenty of insights into the workings of a group that clearly expects do oodles of business on the local turf.

Some of the key learnings we carried home that day came to us courtesy a well-crafted presentation, which has led us to believe that JP Morgan intends to do many things correctly in this country. Viewed against the trends displayed recently by our asset management industry, these will be significant for all concerned, the common investor included.

Getting its band of professionals work as a cogent team will be a major issue for the group. The investment community will expect it to turn out a superlative show in terms of fund management and investor servicing. Added to these will be many other critical aspects of the business - development of products and their distribution being two of the more important ones.

JP Morgan, we trust, will at the end of the day come up as an ethics-bound fund house, backed by smart technology, one that will have a good suite of products to offer.

In fact, there are indications that the group is keen to roll out at least two more funds this year. A liquid fund and a tax-planner have been mentioned.

We, however, certainly do not imagine that there will be quite a few products in the JP Morgan stable too early on. The range has to be expanded selectively, the way most of the key players have spread out.

Competitors

What is competition for the group? Well, the funds industry has 30-odd players today, some which are known internationally. The other point that merits mention here is that the scenario will get upgraded soon, courtesy the entry of new outfits. AIG, for instance, is shortly expected to launch its maiden product. UBS, which has recently secured Standard Chartered's asset management business, is likely to make a beginning soon. Both have global footprints. Mind you, these will all have to compete with home-grown biggies.

Needless to say, plenty of people will keep an eye on JP Morgan's moves. The media - we are a growing tribe too - will want to comment on its fund management, investor servicing and distribution strategies. At the end, the watchers will want to know what is being doing in terms of spreading awareness about investing in general and funds in particular.

We brought that up with the CEO, only to learn that interesting plans are being lined up on this front. (We will dwell more on this later). The funds industry, he said as an afterthought, needs to reach out to sections that have not tested managed products yet.

Will it be any different from others, say, the likes of HSBC or Fidelity - international groups that have entered the local scene before it did? Only time will tell you the answer.

However, to recall some of Mr Vijayan's words, the potential in the Indian market is immense, just immense... ownership of funds is still abjectly low and the situation can change only for the better.

Obviously, ladies and gentlemen, the journey is just about starting.

Feedback may be sent to nilanjan@thehindu.co.in

NILANJAN DEY

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