Country's largest asset management company HDFC Mutual Fund is looking at 15-20 per cent growth in its assets in the next financial year with continued focus on retail investors, a top company official has said.
"We would like to target at least 15-20 per cent growth in
AUM (assets under management) next fiscal as we think that we have the distribution ability, fund management capability and demonstrated track-record to achieve this," HDFC Mutual Fund Managing Director Milind Barve told PTI.
Once the economic environment improves, the fund house
will be back to building business by its continued focus on
retail investors, he said. "I am confident that retail investor will come back and it will come back through the MF route," he said.
When asked about investors' interest from B-15 cities (beyond top 15 cities), Barve said they are witnessing more interest from B-15 cities compared to one year back.
"Over the next three-four years, we will see more meaningful participation from B-15 cities," he said.
HDFC Mutual Fund, which draws around 8.5 per cent of its investors though the banking channel, said it has a strong
distribution channel to reach out to more investors.
Barve also said branch expansion is another area in which he will be focusing for more market penetration.
Referring to the performance of its big funds like HDFC Top 200, which was not sound in 2013, Barve said there is no
co-relation between the fund size and its performance.
HDFC Top 200 is one of the biggest schemes in the industry
but underperformed last year after a successful run in previous years.
On the issue of consolidation, the fund house is of the opinion that it wants to grow organically and will opt for acquisition where it adds value to the fund house.
Last December, HDFC MF had entered into an agreement to
buy all the eight schemes of Morgan Stanley MF India with
assets worth Rs 3,290 crore.
HDFC MF is the largest asset manager with an AUM of Rs1.089 lakh crore in Q3 of this fiscal.