Mirae mulls a range of MF products after Sebi nod

Mirae mulls a range of MF products after Sebi nod
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First Published: Sun, Nov 18 2007. 12 29 PM IST
Updated: Sun, Nov 18 2007. 12 29 PM IST
PTI
Mumbai: South Korea’s largest mutual fund, Mirae Asset Financial Services Group, will enter India with a range of mutual fund products to tap opportunities thrown open by the country’s booming stock market.
Mirae Asset, which manages more than $125 billion of assets, will enter through its Indian subsidiary soon after it receives clearance from market regulator Sebi. The company is also looking at China and other emerging markets.
“We have considerable expertise in investment management and a team of professionals are working on the proposed funds for the India market. Since we believe in long-term investments and have the expertise, we would like to have the entire basket of funds to offer,” Murthy Nagarajan, head (fixed income), Mirae Asset Global Investment Management (India) told PTI here.
“We are very positive about India’s long-term story. It’s demographic profile, skilled workforce and command over English language will give it enough impetus for growth,” he said.
Asked if Mirae Asset is not a late-starter, he said, “If an economy grows by 8%, the thumb rule is that the financial sector of that country would grow at double this rate. We believe India’s per capita income will also triple in the next 20-25 years”.
”Thus, it is obvious that the mutual fund industry in India would grow faster even though there are a number of players and the total industry AUM is less compared to other countries. As such, there is room for new entrants,“ he said.
Mirae Asset, he said, would also tap tier-II cities and organize investors’ education programme in India. “We have already started 23 offices and will probably open more as we grow,” he said.
Nagarajan is, however, cautious on returns on investments.
“Investors have to be satisfied with lower returns since markets will remain volatile in the medium term. Returns will be in the 10-15% range,” he said.
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First Published: Sun, Nov 18 2007. 12 29 PM IST