Comments
Baroda BNP Paribas Mutual Fund targets to enhance its small cities reach for tapping the growing potential in the under-served markets.
Suresh Soni, Chief Executive Officer, Baroda BNP Paribas MF, said the beyond top 30 cities market for mutual funds have registered a growth of two times compared to that of top cities but these markets are still under-served and have great potential.
About 40 per cent of the client base of Baroda BNP Paribhas MF are first time investors in mutual funds and among them, 60-70 per cent are from smaller towns, bought in largely by distributors and new age platforms, he said at an event to mark the first anniversary of the joint venture.
Increasing presence
The fund house had increased its presence to 115 locations from 90 in the past one year and it will go up further to 150 locations in 18 months. The suspension of 0.30 per cent incentive by SEBI for attracting inflows from B-30 is a temporary phenomenon and will be reintroduced in some form or other, he said.
The volume of business generated from smaller cities is not commensurate to investment made and some sort of incentive is required, said Soni. These small markets will grow at a slower pace if the incentives are not re-introduced, he added.
“The fund house has set a target to be among the top 10 players in the next five years with a focus on underserved non-metros,” he said.
The fund house’s assets under management have jumped from ₹22,500 crore to ₹27,000 crore on the completion of first year of operations, he said. Last July, the fund house had launched its first fund of flexi cap and raised about ₹1,400 crore from over 42,000 investors from more than 120 cities.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.