More global MF players to enter India in 2007
Mumbai, January 8: Indian stock market is expected to witness the entry of more global mutual funds in 2007. As many as five leading global asset management companies are planning to enter India’s mutual fund industry in the face of the spectacular 65 per cent growth in 2006.
American International Group (AIG), JP Morgan, AXA Investment, Korean financial services major Mirae Asset Group and a Japanese company are planning to foray into the MF business in India in 2007. “This year at least four to five international players should come in. The more the merrier,” AMFI chairman A.P. Kurien said.
With the Indian MF industry witnessing sustained high growth, the foreign players are eyeing the huge Indian opportunity. Existing foreign funds like Franklin Templeton, Merrill Lynch, Fidelity and HSBC made good returns in 2006. Out of 30 AMCs in the country now, nine are predominantly controlled by global players.
US-based AIG is operating in 130 countries and is a major global player in financial services space. Global investment manager JP Morgan is currently operating in 50 countries with assets under management of $1.3 trillion. AXA Investment has operations in Europe, America and Asia. In Asia it has bases in Hong Kong, Australia, Japan and Singapore and is now looking for entering the Indian sub-continent. South Korean Mirae Asset Group has big plans for the Asia Pacific region and India is now on its charts.
On consolidation in the mutual fund industry, Kurien said besides the talks of Standard Chartered trying to exit its AMC business, Canara Bank and Bank of Baroda were looking at strategic partners for inorganic growth. Standard Chartered is reported to be mulling exiting its AMC business and a large number of domestic and international players are in the fray.
The mutual fund industry, from December ‘05 to December ‘06, received 90 lakh fresh investment orders, taking up the total investment folios to 2.57 crore, the AMFI chairman said. However, the penetration of mutual funds was still not widespread and millions of households needed to be tapped, he said.
The MF regulator has created 55,000 AMFI registered distributors and is hosting an online examination for certifying mutual fund distributors in 35 cities. It is also hosting written examination in over 30 centres for people aspiring to enter the mutual fund industry. On increasing MF presence in rural areas, Kurien said that it would be a phase-wise process as fund houses extend operations from metros and Tier I,II cities into those areas.
“Unit Trust has already started some schemes in rural areas and others would follow,” he added.
—EEB
With the Indian MF industry witnessing sustained high growth, the foreign players are eyeing the huge Indian opportunity. Existing foreign funds like Franklin Templeton, Merrill Lynch, Fidelity and HSBC made good returns in 2006. Out of 30 AMCs in the country now, nine are predominantly controlled by global players.
US-based AIG is operating in 130 countries and is a major global player in financial services space. Global investment manager JP Morgan is currently operating in 50 countries with assets under management of $1.3 trillion. AXA Investment has operations in Europe, America and Asia. In Asia it has bases in Hong Kong, Australia, Japan and Singapore and is now looking for entering the Indian sub-continent. South Korean Mirae Asset Group has big plans for the Asia Pacific region and India is now on its charts.
On consolidation in the mutual fund industry, Kurien said besides the talks of Standard Chartered trying to exit its AMC business, Canara Bank and Bank of Baroda were looking at strategic partners for inorganic growth. Standard Chartered is reported to be mulling exiting its AMC business and a large number of domestic and international players are in the fray.
The mutual fund industry, from December ‘05 to December ‘06, received 90 lakh fresh investment orders, taking up the total investment folios to 2.57 crore, the AMFI chairman said. However, the penetration of mutual funds was still not widespread and millions of households needed to be tapped, he said.
The MF regulator has created 55,000 AMFI registered distributors and is hosting an online examination for certifying mutual fund distributors in 35 cities. It is also hosting written examination in over 30 centres for people aspiring to enter the mutual fund industry. On increasing MF presence in rural areas, Kurien said that it would be a phase-wise process as fund houses extend operations from metros and Tier I,II cities into those areas.
“Unit Trust has already started some schemes in rural areas and others would follow,” he added.
—EEB
SOURCE :INDIAN EXPRESS
posted by anandsonline @ Tuesday, January 09, 2007
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