The Hindu Business Line : We are eyeing mutual fund business: ASK

Kolkata June 10 With stock selection assuming even greater significance, there is a solid case for building portfolios made up of strategic holdings, argues Mr Sameer Koticha, Director, ASK, the investment boutique that specializes in portfolio management services. He also dwells on other issues, including probable equity returns and the group's growth plans.

Excerpts.

For Indian investors, which model will work out better - focused investment boutiques or all-in-one outfits like ICICI?

Each has a point to make. Both styles are likely to do well in a market as spread-out as ours. Remember, in this country, there is demand for both Mercs and bullock carts. The idea is to identify investors' requirements and meet them in the best possible manner.

Catering to retail investors is one thing, meeting the needs of super HNIs is very different. As for our plans, we do not wish to go retail.

What can equity investments offer us in the days ahead?

Considering the kind of growth our economy is seeing - I am referring to 8-9 per cent GDP growth - equities may well provide us with a compounded annualised growth of 18-20 per cent, say, over the next three years or so. At the same time, some sections are expecting good returns from private equity.

One hears of investors who expect to take home about 30-35 per cent from this front.

What are ASK's expansion plans?

We are eyeing the mutual fund business, a plan that should lead us towards the setting up of our own asset management venture. We have worked out a positive view on asset management and hope to align this with our core strategies.

It should complement our current profile, which is chiefly marked by portfolio management services. ASK provides various portfolio concepts tailored to suit the needs of investors, typically ultra HNIs, keeping in mind their wealth creation requirements over the long term. The overall plan is to build quality assets. We know that the mutual funds segment has started attracting new players, both Indian and foreign.

You have also mentioned private equity...

Yes, at another level, ASK is looking at private equity and real estate in order to extend its bouquet of products. The plan may lead us to tie-up with real estate funds and real estate developers. The proposals we have considered also cover provision of advisory services. A private equity desk is being set up to cater to what has lately emerged as a significant business. Incidentally, we are rolling out a financial planning arm as well.

Let me add here that we are watching developments on the commodities front. The segment has just started and it may take some time for things to settle down and mature.

What are the investment themes that are available?

The group currently offers a range, including growth and dividend yield, around which investors' portfolios are built. We also advise a couple of dedicated offshore funds, both of which are based out of Mauritius.

Many of our clients are today tuned to focused portfolios, typically marked by concentrated, strategic investments. Such portfolios are usually for people who hope to fully grasp the merits of the underlying assets over longer periods, and not see them in the backdrop of short-term performance.

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