Moneycontrol
Last Updated : Jan 05, 2018 10:09 PM IST | Source: Moneycontrol.com

Mahindra AMC launches new mid-cap scheme Mahindra Unnati Emerging Business Yojna

The Indian mutual fund industry’s AUM is expected to reach the benchmark of Rs 100 lakh crore in the next 10 years.

Foraying into the mutual fund business, Mahindra Asset Management company is launching a new fund offer (NFO) with its mid-cap scheme Mahindra Unnnati Emerging Business Yojna. The NFO will open for subscription on January 8 and will get close on January 22. The scheme will re-open from February this year.

Ashutosh Bishnoi, MD and CEO, Mahindra AMC told Moneycontrol that this new mid cap scheme will have 65% of the investment will be made in mid-cap emerging companies and the remaining 35% into a mix of large-cap and small-cap emerging companies. The benchmark of the scheme will be BSE mid-cap. Also, the stock pick will be done majorly from the emerging companies which are growing into specific businesses only. Bishnoi expects the scheme to generate market-beating returns in coming 4 to 5 year.

Mahindra AMC, which already started operations in July 2016, is now aiming to become the largest investment house for semi-urban and rural areas in the next 10 years. The company has set up 50 AMC offices across the country. However, facilitating business driven from the rural and semi-urban sector will be their major focus. The penetration in rural areas will initially be headed through Mahindra and Mahindra Financial Services Limited (M&MFSL) centres.

"People in the rural area have money. However, they earn seasonally and generate good revenue mostly in lump-sum only. Because of lack of awareness they do not know how and where to invest their money," Bishnoi added.

Further, senior officials of Mahindra AMC said that Indian mutual fund industry’s assets under management (AUM) are expected to reach the benchmark of Rs 100 lakh crore in the next 10 years which at present, is having an asset base of Rs 22.73 lakh crore. Also, the government is focusing on several reforms.
First Published on Jan 5, 2018 01:59 pm
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