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Bhubaneswar, Dec 19: Leading asset management company UTI Mutual Fund is hopeful to meet 20 per cent growth during this fiscal in the state. A top official of the company said the mutual Fund industry has gained momentum as people have less exposure to other efficient products for investment. The awareness drive by various stakeholders and regulators has also inspired people to invest more in mutual funds.
“The potential for the investors in the state has increased significantly and the momentum that the industry has gained in the state will help in exponential growth in near future. We hope to meet 20 per cent growth this fiscal,” Debashish Mohanty, President and country head (retail) and head (investor service management), UTI Asset Management Company told Orissa POST.
He also said the company with 25 per cent market share in the state in retail investors segment has more than the pan India average of 13 per cent and hence wanted to focus more into the state as there is rising potential for investors.
The company is targeting assets under management (AUMs) of Rs4lakh crore by the close of 2017-18. If achieved, AUMs would grow by eight per cent over last financial year’s figure of Rs3,75,000 crore with portfolio of 1.15 crore.
“Market conditions, UTI Mutual Fund’s strength and the investor camps that we plan to hold would help achieve our target in AUMs. Our mutual fund assets are expected to rise from Rs1.54 lakh crore to Rs1.75 lakh crore by the end of this financial year,” Mohanty added.
The company plans to introduce three more equity focused funds before the end of this financial year. It has approval from markets regulator Sebi for these products. Mohanty feels the waning interest of people in bank fixed deposits (FDs) due to unattractive returns would spur them towards equity investments. “There is no alternative available to the people. FDs cannot beat inflation. People should look to invest in equity with limited risk. Mutual Funds are well-regulated vehicles. The products, as well as the product manager, are regulated. That keeps people’s money is safe hands”, Mohanty said on the sidelines of a conclave on ‘Retail Savings Opportunities’ organised by the Indian Chamber of Commerce (ICC).