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Business News/ Market / Stock-market-news/  UTI MF crosses 1trillion mark, eyes leadership slots
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UTI MF crosses ₹1trillion mark, eyes leadership slots

UTI Mutual Fund has attained an asset base of over ₹1 trillion with about one crore investor accounts

UTI AMC is also looking to launch an Initial Public Offer. Photo: Ashesh Shah/MintPremium
UTI AMC is also looking to launch an Initial Public Offer. Photo: Ashesh Shah/Mint

Mumbai: UTI Mutual Fund, the country’s oldest fund house, has attained an asset base of over 1 trillion with about one crore investor accounts and is now targetting leadership positions across various segments.

Besides expanding its presence to smaller cities, the fund house is also looking to bolster its offerings in terms of pension and offshore market products, UTI Asset Management Company’s Managing Director Leo Puri said.

UTI AMC, which runs UTI Mutual Fund, is also looking to launch an Initial Public Offer (IPO) to become the country’s first asset management company to go public. Puri, a dual Masters degree holder from Oxford and Cambridge University of the UK, said UTI Mutual Fund has embarked on a robust growth path and is looking at leadership positions across various product segments.

“We have an old legacy and that legacy was to democratise access to the capital markets. That mandate remains very relevant even today as we continue to have a very low penetration of 2-3% of household participation despite all these efforts.

“Today we (UTI Mutual Fund) have folios of about one crore. The total industry is about 4.5 crore, so we have around 20 odd per cent of the total folios of the industry. But even if we double that, it would not be a very big penetration," Puri told PTI.

UTI AMC was carved out of the erstwhile Unit Trust of India as a mutual fund in February 2003 and is promoted by the four of the largest public sector financial institutions as sponsors, SBI, LIC, Bank of Baroda and Punjab National Bank. These four each hold 18.5% stake in UTI Asset Management Company, while US-based fund house T Rowe Price has acquired a 26% stake.

Puri, who has been heading UTI Mutual Fund for about two years now, was earlier Managing Director at global private equity giant Warburg Pincus. He has previously also worked as Director and Senior Advisor with McKinsey.

Asked about the next target after crossing 1 lakh crore in terms of asset under management and one-crore mark in terms of investor folios, Puri said, “Our thought is now turning to from where the next one crore will quickly come from. Puri said it is expanding its base through expansion into smaller cities and new product segments, it is capturing institutional flows and pensions, and also tapping the offshore markets looking at Indian assets. “We see very significant growth opportunities and we are very excited," he said.

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Published: 02 Aug 2015, 06:50 PM IST
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