Mahindra Asset Management Company is betting big on the semi-urban and rural markets for growing its business. Semi-urban and rural markets account for around 30 per cent of its assets under management (AUM), which stood at nearly ₹4,800 crore as on August 2018.

According to Jatinder Pal Singh, Chief Marketing Officer, Mahindra AMC, while investments from the top 15 cities into the mutual fund industry has been growing at around 20 per cent, the rate of growth in semi-urban and rural markets has been much higher at around 35-40 per cent in the last two-to-three years.

Mutual fund investments from semi-urban and rural markets currently account for nearly 20 per cent of the industry’s total AUM, which stood at around ₹25.2-lakh crore as on August 2018. “This trend (of higher growth in semi-urban and rural markets) is likely to continue, aided by improving awareness and digitalisation in these markets,” Singh told BusinessLine .

The company’s focus has been on tapping the semi-urban and rural areas, where its parent company has strong presence, since the time of its launch around two years ago. “We will strive to maintain the share of rural to our AUM steady at around 30 per cent levels even while we continue to grow our book,” he said.

Expansion move

The company, which currently has presence across 65 locations, is looking to add 10-15 more locations in these markets in the next one year. It is also looking to launch two-to-three more products including a large-cap fund and a hybrid fund primarily targeted at the equity segment this year.

Mahindra AMC currently has eight products, including both debt and equity. Equity accounts for nearly one-third of its total AUM of ₹4,800 crore.

The company recently launched an open-ended equity scheme — Mahindra Rural Bharat and Consumption Yojana, which will invest primarily in equity and equity-related instruments of entities engaged in or likely to benefit from the high growth of income and consumption in rural India.

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