Edelweiss MF CEO Gupta says fund house open to inorganic growth in MF space


Edelweiss Mutual Fund is open to acquisitions in the mutual fund space to grow its business, the asset management company’s chief executive officer (CEO) Radhika Gupta said.

“Nothing on the cards immediately. As a group we never rule out inorganic growth opportunities and our group we have acquired 3 firms JP Morgan on the AMC side and 2 on the AIF side (Alternative Investment Fund),” Gupta said.

The CEO was speaking on the sidelines of an event organised by Cafemutual, titled CIFA 2018.

The fund house will only acquire another fund house if it adds value to the company.

“Edelweiss has always looked at inorganic growth and we will look at it for the right reasons. We just don’t want to buy something for assets we want to buy something where we can add value,” she added.

Edelweiss Mutual Fund is aiming at doubling the size of its assets under management (AUM) to Rs 30,000 crore by FY19 and Rs 1 lakh crore by 2021.

“We were the fastest growing AMC last quarter and we will end the year with Rs 14,000 crore AUM on the AMC side. This number would go to Rs 30,000 crore next year. We have set a target of Rs 1 lakh crore in MF assets by 2021,” said Gupta.

The fund house garnered Rs 350 crore through its recently-launched new fund offer of Edelweiss Maiden Opportunities Fund. This fund invests in recently listed companies and upcoming listings.

Speaking about future NFOs, Gupta said that the fund house believes largely in coming up with innovative products and may launch 2-3 innovative products this year.

Reacting to market regulator Securities and Exchange Board of India’s directive to fund houses to classify their schemes under five broad categories, Gupta said Edelweiss believes in simplicity and supports the endeavour.

“We are completely unaffected by the categorization. There were too many schemes, investors were confused. So, standardization and simplification is very important for any industry and we support the endeavor,” she said.

On Oct 6, SEBI had asked mutual fund houses to classify their schemes under five broad categories to cut through the complex clutter of schemes for easier understanding of investors.moneycontrol