LIC Nomura Mutual Fund aims to reach average assets under management (AUM) mark of Rs 10,000 crore by the end of current fiscal with growth coming in from open-ended tax-saving scheme along with other funds.
"We aim to touch Rs 10,000 crore of AUM by the end of this financial year," LIC Nomura Mutual Fund Chief Executive and Director Nilesh Sathe told PTI here today.
The fund house aims to open one lakh folios under its recently launched open-ended tax saving scheme (Unit Linked Insurance Scheme) by the end of March, he said.
The firm, which had an AUM of Rs 6,882 crore by end of December, also hopes to get approval from the regulator for launching RGESS (Rajiv Gandhi Equity Savings Scheme).
"We have already approached the regulator and hope to get the approval soon for launching the scheme," Sathe said.
To encourage savings by retail investors in financial instruments, Sebi had announced a framework for RGESS last December after which many fund houses have filed draft offer documents with the regulator.
Referring to priorities of the fund house after taking over as the CEO, Sathe said LIC Nomura MF would like to ensure higher return on investment along with increasing penetration and more retail participation in schemes.
"We have already hired new fund managers to give higher return to our investors through professional management. Also, we are increasing our distribution network by tying up with banks."
On the growth in AUMs in the next financial year, Sathe said the fund house aims to increase its AUM to Rs 20,000 crore in FY'14.
The fund house is a tie-up between LIC and Japan-based financial services firm Nomura with India's insurance giant holding 65 per cent stake in the joint venture.