Peerless Funds Management Company is planning to launch a hybrid fund focussed at retail investors in the current quarter, according to its Chief Executive Officer, Mr Akshay Gupta.
The fund will invest 80-100 per cent in debt instruments and a maximum of 20 per cent in equity, he told Business Line. “The fund, to be named Income Plus, would be our flagship retail-investor oriented fund,” Mr Gupta said.
Short-term debt fund
The debt-intensive fund would aim at outperforming the returns from fixed deposits, post office deposits and other conventional savings instruments over a two to four years time horizon, he said.
Peerless would also launch, during July-August, a short-term debt fund, he said. “We would launch this fund after the Credit Policy as we expect further tightening in key rates by the RBI in the policy,” Mr Gupta said.
The company would look at launching its first equity scheme only after six months, he said. “We see a 10-15 per cent correction in the stock market and our launch of equity-oriented fund should coincide with the market upturn,” he said.
Peerless Mutual Fund, a subsidiary of the Peerless General Finance and Investment Company, launched operations in February and its asset under management stood at Rs 900 crore as on date. “We have set a target of garnering at least Rs 2,000 crore AUM by March 2011 and Rs 5,000 crore in the next three years,” Mr Gupta said. It targeted to break even in five years, he added. The company now has 30 branches in the country and planned to take it up to 80 in three years, Mr Gupta said. It also planned to engage 5,000 peerless agents and an equal number of independent financial advisors for selling mutual fund in the next three years, he said. The company's initial capital base of Rs 50 crore would be sufficient to fund these expansion plans, he added.
Unlike the customary industry practice, Peerless would initially focus on tier III and IV towns and rural areas for selling mutual funds, Mr Gupta said. This would be in tune with its strategy to tap the existing 80 lakh customer base of the parent company, he added.
Source: http://www.thehindubusinessline.com/2010/05/12/stories/2010051251251100.htm
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