SEBI Grants Licence to Mahindra Mutual Fund
Mahindra Finance announced that its wholly owned subsidiary, Mahindra Asset Management Company Private Limited, has received a license to manage the Mahindra Mutual Fund.
Mr. Ramesh Iyer, the Financial Services sector President of the Mahindra Group and the Managing Director of Mahindra Finance, said “In keeping with our Mission of “Transforming rural Lives”, 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 innovative products that are tailored to their needs. Our customer base of nearly 4million and over 1200 branches of Mahindra Finance will play a critical role in ensuring success in the mutual fund business through best in class customer service.” Mr. Iyer further said “We believe the business would be greatly benefited by the Mahindra Brand and through Mahindra Eco System.”
Mr. V. Ravi, Executive Director, Mahindra Finance and the Chairman of Mahindra Asset Management said, “Our investment in the mutual fund business is intended to be long term in nature. We will adopt a developmental approach and build the mutual fund market in smaller towns and rural India. Investments products are a subject of ‘advised sales’ and require the support of trained advisors. We believe there is a great opportunity to convert physical assets, which are generally illiquid into productive, financial assets.”
The Mahindra Asset Management Company is in the process of putting together its team, product portfolio and strategy for market entry, which will be announced in due course. It was, however, made clear by Mr. Ashutosh Bishnoi, Managing Director & CEO that the focus of the business will remain in the same markets where Mahindra Finance is currently focused. He said, “The semi-urban and rural markets will remain the priority for the 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. With the proven success and strength of the relationships that Mahindra Finance already has we believe that we are well poised to take this business forward in same markets”.