Mahindra Mutual Fund is targeting assets under management (AUM) of over Rs 5,000 crore in the next two years with distinct focus on rural and semi-urban markets.
"We are targeting Rs 5,000-Rs 6,000 crore of AUM from Rs 1,500 crore in the next two years," Mahindra Asset Management's MD and CEO Ashutosh Bishnoi said here today.
He said demonetisation is favourable for the mutual fund industry in terms of growth as part of the cash in banks will get into MFs.
Bishnoi said Mahindra will have a distinct focus on rural and semi-urban markets where industry has not ventured, instead scrambling for the same set of investors in the top cities.
"We are targeting to reach at least 1,200 locations, leveraging Mahindra Group over a period of time as against the industry which is hopeful about getting their money from 150-200 cities and towns," he said.
Currently, retail participation in Mahindra MF is negligible as 80 percent of its AUM is corporate funds but this will change gradually, he added.
With a view to focus more on smaller towns, cities and villages, Mahindra MF has decided not to brand its MF schemes in English.
The third and the latest scheme is named Mahindra Mutual Fund Dhan Sanchay Yojana. It will remain open from January 10 to January 24.
Bishoi expects the success of Unified Payment Interface to help in greater penetration of mutual funds into the Indian market.
MF investors account for just 3 percent of the population.
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