Bagla, who has spent 25 years across fund houses, primary dealers, and financials like ICICI Securities, AIG Mutual Fund, Reliance MF, Principal AMC etc, feels that with 44 fund houses the domestic mutual fund industry has lots of space for more players, especially more room differentiated players like Trust AMC, which will be offering long only funds.
On the back of adding a record Rs 2 lakh crore inflows in November, the AUM crossed for the first time the Rs 30-lakh crore mark and a recent Crisil report had forecast it to clip at over 70 per cent in the next five years to Rs 50 lakh crore. But over 90 per cent of the AUM is held between the top five players, with the rest being just about in the fringe. And so is the investor profile as vast majority of them come from the top 15 cities.
"Initially we will have only fixed income funds, others assets will come after we gather a critical mass of folios, which we expect to attain over the next 18-24 months and the first scheme will be hitting the markets in a few weeks," Bagla said, adding initially they will be selling only fixed income products.
They will market as a more objective, safer, more predictable and therefore more consistent fund house, he said.
The AMC offers a broad-based model portfolio created by Crisil, for which it has tied up with the largest rating agency.
Trust group is known for financial innovation particularly in fixed income and debt markets.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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