Latest New Mutual Funds in India
Mutual Funds investors are in for too much of a good thing, with more mutual fund players joining the fray. Additions to the already crowded space of mutual fund players are IDBI Asset Management and Union KBC who have got a nod from the Securities and Exchange Board of India (Sebi) to start their operations. IDBI Asset Management had declared their arrival on 25 March and Union KBC followed suit the next day.
IDBI Asset Management is a wholly-owned subsidiary of IDBI Bank and Union KBC is a joint venture between the Union Bank of India and the Belgian KBC Asset Management Group, where Union Bank has a 51 per cent stake and the other 49 per cent is owned by KBC. IDBI Asset Management will be launching its products in both equity and fixed income. Union KBC is going for the liquid fund section and equity schemes at first. From the second year, it will make inroads into offshore funds.
In the last 20 years, the rate at which the Indian mutual fund industry has grown is phenomenal—it has become an over Rs 781,000-crore industry. There are already 40-plus mutual fund companies in the market as opposed to just one player in 1990. Out of these, 30 are active players.. It seems like financial companies have realized that after insurance, the next big opportunity is in mutual funds.
Banks like IDBI are looking at this mutual fund opportunity to widen their presence and become a financial conglomerate that offers all financial services like ICICI and HDFC. Yogesh Agarwal, chairman and managing director, IDBI Bank, said: “The launch of the asset management business is in line with the bank’s long-term vision to emerge as a leading universal bank. IDBI Bank’s established brand name and extensive branch network will enable our asset management company to grow at a fast pace and become a leading player in the business.” M.V. Nair, chairman & managing director of Union Bank of India, says: “In this fastest growing market, 6 per cent of people’s assets are invested in mutual funds. There is a huge potential to develop.”
What does it hold for the investor in mutual funds? The good thing is that you have more to choose from. The tight competition will consistently push the players to come up with innovative and customised products in expectation of attracting more business. The flipside is that the already confused invetor will be more confused trying to find out which is the best from the lot of mutual fund products which look so damn, similar in nature. Quite a task!
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Posted by Starwin on 23rd April, 2010
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