L&T MF plans new schemes next fiscal; to focus on retail
L&T group firm L&T Mutual Fund today said it plans to introduce a couple of schemes, which will be a mix of debt and equity, in the first half of the next fiscal and will also focus on retail customers to increase its clientele.
L&T MF has average assets of Rs 2,538 crore at the end of February and offers 18 schemes spread over equity, fixed income and liquid funds.
"We are planning to launch a L&T Balanced Fund, which will invest in equity and debt instruments under a single portfolio in the early part of the next fiscal," L&T MF Chief Executive Sanjay Sinha told PTI.
The company plans to focus on the retail customers to increase its customer base. It currently has about 1.10 lakh retail and 600 institutional customers in its clientele.
"We are looking at making our existing debt products attractive to our customers. Besides, we might come out with new products to increase the size of retail investment in our portfolios," Sinha said.
L&T's financial services subsidiary, L&T Finance, had recently acquired DBS Cholamandalam AMC, which has now been rechristened as L&T Investment Management while the fund-house has been renamed as L&T MF.
Asked whether the asset management company would look at unlocking its value through a merger with another entity in the future, Sinha said, "We might consider the option in the long term. This year would be too early."
The company said it is awaiting market regulator Sebi's approval for the Natural Resources and Energy Fund. "DBS Chola had filed an offer document for the fund in 2008. We are taking it forward as we feel the natural resources and energy space has good potential for returns," he said.
"As soon as we get approval for the fund (Natural Resources and Energy Fund), we would go ahead with the Balanced Fund," Sinha added.
Moreover, the fund house is also evaluating options to up its distribution network to 41 locations, from the present 19.
"We are increasing our pan-India presence. We are targeting 85-90 per cent of the MF investor base by targeting to reach to 41 locations by the end of this year," he said.
As part of its increasing focus on retail investors, L&T MF had last week launched a scheme -Daily Investment Plan- which will offer investors an opportunity to transfer a fixed amount on a daily basis to eligible open ended equity schemes of the company, with a minimum investment amount of Rs 10,000.
The country currently has 37 fund houses with an average asset under management of Rs 7.81 lakh crore at the end of February.