Unifi Capital receives in-principle approval to launch mutual fund business

There has been a slew of portfolio management service (PMS) companies looking to enter the Rs 48 trillion Indian mutual fund industry.

Portfolio Management company, Unifi Capital Pvt. Ltd, has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch a mutual fund business in India.

As per the status of mutual fund applications on SEBI’s website as on September 30, 2023, Unifi had applied for the mutual fund license on December 31, 2020.

Unifi Capital is long-only India centric fund manager, specialising in event-oriented top-down themes and a bottom-up focus on “growth with value”.

Established in 2001, Chennai-based Unifi Capital has assets under management (AUM) of Rs 20,400 crore on behalf of about 10,000 Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) clients across 22 states in India.

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“We will play to our well-established strengths in deep bottom-up research and deliver a high standard of excellence that puts client experience manifestly front-and-centre. Within the regulatory framework, we have more than enough space to offer differentiated investment strategies that mutual fund investors are yet to be served,” said K Sarath Reddy, Founder of Unifi Capital. Reddy is also the managing director and chief investment officer (CIO).

There has been a slew of portfolio management service (PMS) companies looking to enter the Rs 48 trillion Indian mutual fund industry.

In September, Kenneth Andrade’s Old Bridge Capital Management, a PMS, received the final approval from SEBI to commence its mutual fund operations.

Andrade was head-Investments at IDFC Mutual Fund for 10 years during 2005 to 2015.

Further, in August, Helios Capital Management, a PMS, had received final approval from capital markets regulator to launch a mutual fund house. Again, Samir Arora founder of Helios Capital was the chief investment officer of Alliance Capital Mutual Fund From 1993 to 1998.

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The mutual fund space in India is heating up with the entry of new asset management companies (AMCs). Bajaj Finserv Mutual has so far launched five funds, while Helios MF and Zerodha Fund House have launched two schemes each.

Meanwhile, Emkay Global and Angel One have also received in-principle approvals from SEBI to launch mutual fund businesses.

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