Choice AMC, wholly owned subsidiary of financial services company Choice International has received the final approval from the Sebi to act as Asset Management Company to run Choice Mutual Fund, a company filing said on August 1.
Choice's formal entry into investment management paves way for a phased rollout starting with passive products such as Index Funds and Exchange Traded Funds (ETFs).
Arun Poddar, CEO of Choice International said the approval will help expand the company's financial services portfolio. "The mutual fund platform will initially focus on passive products, in line with our objective to build a stable, scalable, and professionally managed asset management business under a strong regulatory and governance framework."
The AMC has tentatively planned to launch its first fund before Diwali, Poddar had recently said. Choice International's 93-94 percent of current revenue comes from retail accounts, and institutional share is around 6% to 7%.
The company aims to attempt to bridge the gap between traditional financial advice and modern investment products through Choice Mutual Fund. "The Company intends to serve retail, emerging affluent, and institutional segments through accessible products that deliver long-term value," the statement said. Choice is among the top 20 brokers in India, serving over 14 lakh clients with a network of more than 58,000 business associates.
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