Mumbai: Mahindra and Mahindra Financial Services Ltd on Friday said its wholly-owned subsidiary Mahindra Asset Management Co. Pvt. Ltd has received regulatory approval to manage the Mahindra Mutual Fund.
Mahindra Mutual Fund will be engaged in the business of asset management and will be the 46th player to join the ₹ 13.24 trillion industry.
According to the Securities and Exchange Board of India website, Mahindra Finance had applied for a mutual fund licence on 30 December 2008 and was given an in-principle approval on 4 October 2011.
“...we believe that the mutual fund business would enable us to provide investment options to the rural customers that enable them to improve the quality of their lives by creative and innovative products that are tailored to their needs," said Ramesh Iyer, president, financial services sector, Mahindra Group, and managing director of Mahindra Finance, in a press release.
“Our customer base of nearly 4 million and over 1,200 branches of Mahindra Finance will play a critical role in ensuring success in the mutual fund business through best-in-class customer service," Iyer added.
The company added that the focus of the business will remain the same markets where Mahindra Finance is currently focused.
“The semi-urban and rural markets will remain the priority for Mahindra Mutual Fund. We believe that investors in these markets have an even greater savings potential than urban markets, but they do not have either the access or awareness of market-related financial instruments such as mutual funds. So our task will be to create access and awareness," said Ashutosh Bishnoi, managing director and chief executive officer of Mahindra Mutual Fund.