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SBI Mutual Fund might merge some of its schemes with similar mandates in order to avoid overlapping. The asset-management company currently has about 28-30 schemes, excluding a fixed-maturity plan, said Mr Deepak Chatterjee, Managing Director, SBI Funds Management Ltd.
“The mutual fund industry needs simple, understandable and measurable schemes. There needs to be consolidation of schemes having similar mandates,” Mr Chatterjee told newspersons on the sidelines of the fifth mutual fund summit organised by the Indian Chamber of Commerce.
“There could be merger of one or two odd schemes at our end,” he said.
SBI Mutual Fund works closely with State Bank of India to distribute its products. He said usually close to 30 per cent of its business came from the bank's branches. “For banks it (distribution of mutual funds) can be a lucrative business because of the sheer volumes and the possibility of earning fee-based income. So we see a huge potential in this channel,” Mr Chatterjee said.
The company has witnessed an increase in the number of investors choosing systematic investment plans for investing in its schemes. “We have recorded close to nine lakh SIPs so far during this fiscal, against seven lakh SIPs in the last financial year,” he said.
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