Mahindra AMC gets nod for mutual fund business

Our Bureau Mumbai | Updated on January 19, 2018 Published on February 05, 2016

Mahindra Asset Management Company, which received its licence to enter the mutual fund business from SEBI, will focus on investors in semi-urban and rural markets, Ramesh Iyer, Managing Director, Mahindra Finance, said.

With the entry of Mahindra MF, the number of fund houses operating in India will rise to 43.

According to Iyer, this will set Mahindra MF apart from other fund houses, which start in cities and then try to expand into smaller towns.

With an eye on sentiments

“Our strategy will be bringing our knowledge of rural customers and their cash flows to design products that best suit them,” Iyer explained. “Most investors in these regions put their money in fixed deposits and gold. We will keep that sentiment in mind when we design products,” he added.

Mahindra Mutual Fund may also consider segregating the market by profession, Iyer said. “We could look at products that suit farmers and others which suit traders. We can also design products that suit different age groups, as different age groups have different risk-taking abilities.”

Mahindra AMC has 12 months from the receipt of licence to launch the fund house and their first product. Mahindra Finance is an NBFC with over ₹40,000 crore in managed assets, with 40 lakh customers in over 2.6 lakh villages.

Published on February 05, 2016
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