Angel Broking to foray into asset management business

KR Srivats New Delhi | Updated on August 11, 2021

Dinesh Thakkar, Chairman and MD, Angel Broking Ltd

To soon approach SEBI for MF license, says CMD Dinesh Thakkar

Angel Broking is now looking to move beyond digital broking services by setting-up an asset management company that will ride on its fintech-driven approach with artificial intelligence (AI) and machine learning solutions, a top official said.

“Transitioning towards an AMC business is the next logical step for us. We have commenced the process of acquiring regulatory approvals. Currently, we are in the advanced stages of applying to SEBI for the in-principle approval to set up the mutual fund,” Dinesh Thakkar, Chairman and Managing Director, Angel Broking, told BusinessLine. Once the required regulatory approvals are in place, the AMC would be incorporated and set up as per the mandates of the current regulations, he added.

“With an AMC license, we believe we can disrupt the wealth creation industry for good, by introducing technologically advanced, yet simplified, products and services,” he said. “The funds offered by our AMC would be made available on our platform along with the mutual funds of other AMCs,” he said.

Angel Broking’s plan to set up an AMC comes at a time when the overall assets under management of the MF industry hit a new high of ₹35.31 lakh crore in July this year. Several records of the MF industry were surpassed in July.Client base swellsAided by growth of its tech-led platform in recent years, Angel Broking has a client base of 5.3 million as of first quarter this fiscal.

Angel Broking, whose journey has spanned more than two-and-a-half decades, completed its metamorphosis into a digital brokerage by 2019. After this, everything from client acquisition to trade execution and advisory became available at the click of a button.

“We have been consistently acquiring customers, a majority of whom are millennials, from tier-II and tier-III cities, and are investing in equity for the first time through us. These customers would soon move to mutual funds for their equity investment needs. Hence, transitioning towards the AMC business is the next logical step for us. Our vision is to drive financial inclusion by empowering as many investors as possible, especially from the underserved corners of the country,” Thakkar said.

He highlighted that the broking industry has added over 8 million new demat accounts between April and July 2021, which accounts for nearly 55 per cent of the new demat accounts added during last year. He noted that India was witnessing increased participation in mutual funds, which is clearly reflected in the increasing retail folios and AUM. However, MF fund penetration in India is still far lower than global peers.

Published on August 11, 2021

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