Mahindra Finance to soon set up Asset Management Company to tap rural rich
Mahindra Finance will soon set up an asset management company as it prepares to tap the rural rich, this particularly at a time when the mutual fund industry hasn’t done too well in the past two decades. “We are interested in getting into mutual funds,” said Ramesh Iyer, MD and CEO, Mahindra Finance.”We will be investing the first five years in educating people, setting up branches.”
The company has over 16,000 employees and more than 1,000 offices spread across 25 states It sells MFs of other companies through its branches. This is the second time Mahindra is planning to enter the mutual fund space. Today , the mutual fund industry manages assets manages assets worth 13.15 lakh crore.
Curiously , Mahindra is entering the sector at a ti me when glo bal firms are exiting India, most of them grappling with losses and unable to scale up their domestic busi ness as they had expected to.
Iyer said that the company will go on its own, as its approach will be rural. Recently, Goldman Sachs joined global firms such as ING, Morgan Stanley and Deutsche Bank to sell their businesses in emerging markets.
Last year, Dutch financial services group ING sold its sta ke in ING investment management to Birla Sun Life Mutual Fund. In 2012, HDFC MF bought the assets of Morgan Stanley Asset Management, while Deutsche Bank sold its MF business to Pramerica.Mahindra Finance, a financial services arm of auto company M & M, is involved in vehicle finance, insurance brokerage, rural housing finance, refinance of old vehicles.
Read full article: Economic Times