IDBI Asset Management Ltd, the fully-owned unit of IDBI Bank that received Securities and Exchange Board of India approval to launch mutual fund operations on Thursday, will focus on index funds on the equity front.
The first fund launch is likely to be IDBI Nifty Index Fund, which the company will file with regulator on Friday. The fund house, headed by Krishnamurthy Vijayan, has not hired an equity fund manager and has Gautam Kaul to manage fixed income funds.
The bank has invested Rs 25 crore in the mutual fund unit, Yogesh Agarwal, chairman and managing director, IDBI Bank, said. “We have an established retail model to distribute mutual fund products,” Agarwal said, adding the funds would be distributed via 700 branches of the bank in the country.
“Mutual fund business augurs well with the bank’s vision of providing entire gamut of financial services to clients,” he said.
Asked why IDBI Mutual Fund has decided to go solo after having got out of the 50% joint venture with Principal Mutual Fund in March 2003, Agarwal said, “When you marry you have to make adjustments, when you are a bachelor you are free to go the way you want”.
It is also learnt that Fortis, which is IDBI Bank’s partner for its insurance venture, had offered to be a partner in the mutual fund venture as well. But the bank declined it. “If need be, we can acquire one of the companies that are willing to exit the business,” Agarwal mentioned.
Source: http://www.dnaindia.com/money/report_idbi-bank-mf-unit-to-focus-on-index-funds_1363480
The first fund launch is likely to be IDBI Nifty Index Fund, which the company will file with regulator on Friday. The fund house, headed by Krishnamurthy Vijayan, has not hired an equity fund manager and has Gautam Kaul to manage fixed income funds.
The bank has invested Rs 25 crore in the mutual fund unit, Yogesh Agarwal, chairman and managing director, IDBI Bank, said. “We have an established retail model to distribute mutual fund products,” Agarwal said, adding the funds would be distributed via 700 branches of the bank in the country.
“Mutual fund business augurs well with the bank’s vision of providing entire gamut of financial services to clients,” he said.
Asked why IDBI Mutual Fund has decided to go solo after having got out of the 50% joint venture with Principal Mutual Fund in March 2003, Agarwal said, “When you marry you have to make adjustments, when you are a bachelor you are free to go the way you want”.
It is also learnt that Fortis, which is IDBI Bank’s partner for its insurance venture, had offered to be a partner in the mutual fund venture as well. But the bank declined it. “If need be, we can acquire one of the companies that are willing to exit the business,” Agarwal mentioned.
Source: http://www.dnaindia.com/money/report_idbi-bank-mf-unit-to-focus-on-index-funds_1363480
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