Axis Asset Management Co., backed by India’s fourth-largest bank, aims to be one of the nation’s top 10 money managers in the next five years, said Chief Executive Officer Rajiv Anand.
Anand said he expects to receive approval from the stocks regulator to start operating the mutual fund business, set up in January, soon. He plans to offer funds from October and more than double the team to 100 people from 40 by March next year.
India’s funds industry has quadrupled in size over the past five years. Assets under management at mutual funds swelled more than four times to 6.9 trillion rupees ($142 billion) in the five years to July, according to data compiled by Bloomberg. Almost half of India’s 1.1 billion people are under 25 years old. They’re spending more on electronics, clothes and cars as incomes grow along with the economy and credit becomes more accessible.
“It’s a great time to be entering the business,” Anand said in an interview in Mumbai today. “Indian mutual funds that are backed by strong sponsors are witnessing faster growth in their assets under management than peers.”
Lower costs including for real estate and hiring are conducive for setting up a new business, he added.
Anand will seek to tap the client base at more than 550 cities across India where Axis Bank Ltd. has its branches.
“We want to become a significant player in the mutual fund business in the country,” said Anand. “The Axis brand name is very well known and that is a huge advantage for us to leverage the asset management business on.”
Anand said he plans to set up 12 branches across the country. He said he expects to offer money market funds in October subject to receiving regulatory approval and plans to start equity plans after Oct. 26.
He has hired Chandresh Nigam to head the equity business, while Ninad Deshpande will manage fixed-income products.
Anand said he would look at acquiring money managers to grow the business if he finds suitable opportunities.
Anand said he expects to receive approval from the stocks regulator to start operating the mutual fund business, set up in January, soon. He plans to offer funds from October and more than double the team to 100 people from 40 by March next year.
India’s funds industry has quadrupled in size over the past five years. Assets under management at mutual funds swelled more than four times to 6.9 trillion rupees ($142 billion) in the five years to July, according to data compiled by Bloomberg. Almost half of India’s 1.1 billion people are under 25 years old. They’re spending more on electronics, clothes and cars as incomes grow along with the economy and credit becomes more accessible.
“It’s a great time to be entering the business,” Anand said in an interview in Mumbai today. “Indian mutual funds that are backed by strong sponsors are witnessing faster growth in their assets under management than peers.”
Lower costs including for real estate and hiring are conducive for setting up a new business, he added.
Anand will seek to tap the client base at more than 550 cities across India where Axis Bank Ltd. has its branches.
“We want to become a significant player in the mutual fund business in the country,” said Anand. “The Axis brand name is very well known and that is a huge advantage for us to leverage the asset management business on.”
Anand said he plans to set up 12 branches across the country. He said he expects to offer money market funds in October subject to receiving regulatory approval and plans to start equity plans after Oct. 26.
He has hired Chandresh Nigam to head the equity business, while Ninad Deshpande will manage fixed-income products.
Anand said he would look at acquiring money managers to grow the business if he finds suitable opportunities.
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