Baroda BNP Paribas Mutual Fund (BBPMF) wants to be among the top-10 mutual fund houses in terms of fresh asset flows in the next 3-5 years, its Chief Executive Officer Suresh C Soni has said.

This mutual fund (MF), managed by Baroda BNP Asset Management, has an assets under management (AUM) and advisory of about ₹24,000 crore now, including ₹2,000 crore of advisory for an offshore fund.

It maybe recalled that Baroda BNP Asset Management was formed in March this year post the merger of the asset management businesses of Bank of Baroda and BNP Paribas. While Bank of Baroda holds 50.1 per cent stake in the AMC (Baroda BNP Asset Management), BNP Paribas has remaining 49.9 per cent stake.

“Aspirationally, we would like to be among the top-10 fund houses in terms of fresh flows (incremental flows) in the next three-five years. We do believe that given the kind of partners backing us, this should be achievable. AUM growth is an outcome of efforts on the ground. From our perspective, we are expanding our network and also our product suite,” Soni told BusinessLine here.

Launch of new fund

Baroda BNP Paribas Mutual Fund currently offers about 27 schemes across equity, hybrid, debt and overseas fund of fund categories. This fund house had recently announced the launch of Baroda BNP Paribas Flexi Cap Fund - a dynamic equity scheme with flexibility to invest across market caps. The New Fund Offer is from July 25-August 5.

Soni also said that the fund house plans to enhance its physical presence from about 110 locations now to about 140 in the next 18 months.  Efforts are also on to grow its digital channel, he added.

“We will come out with more offerings and grow our reach. We are fairly ambitious and would like to grow significantly from here,” Soni said. He, however, declined to give a number on the AUM that the fund house is aspiring for in the next three-five years.

Soni highlighted that Indian MF industry has been growing at a compounded annual growth rate (CAGR) of 17-18 per cent over the last decade and is poised to grow at least 14-15 per cent in the next decade.

The country is still under-penetrated as regards MFs and the MF industry is yet to reach the masses, he added. “Scope for growth is still large and it is a multi-decadal opportunity for us,” Soni said.

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