Birla Sun Life AMC plans bank ETF, to focus on existing funds

Birla Sun Life AMC Ltd plans to come up with a bank exchange traded fund (ETF) though its focus would be primarily on its existing funds, a top official said here.

“We have filed for approval of a banking ETF with Sebi (Securities & Exchange Board of India). Bank ETFs are doing well and if the approval comes through, we would be launching this product. But, growth of existing funds will be crucial for us”, said A Balasubramanian, chief executive officer, Birla Sun Life AMC Ltd.

Birla Sun Life manages assets under management (AUMs) of Rs 2.05 lakh crore (as on June 30, 2017) - this includes equity funds worth Rs 59,891 crore and debt funds valued at Rs 1.45 lakh crore. By the end of this financial year, its AUM size is expected to reach Rs 2.4 lakh crore.

The size of the country’s mutual fund (MF) industry by the end of first quarter of FY18 has reached Rs 19.49 lakh crore and this is projected to touch Rs 23 lakh crore by the close of the fiscal. Birla Sun Life is the fourth largest player in MF space having a market share of 10.55 per cent. The asset management company is exposed to 40 companies across 15 sectors and also manages overseas assets exceed $3.5 billion.

On the impact of Goods & Service (GST) tax on the MF industry, he said, “GST would bring gains for the industry. But, its impact can be measured in the December quarter”, Subramanian said.

Birla Sun Life AMC Ltd, the investment manager for Aditya Birla Sun Life Mutual Fund, is a joint venture between Aditya Birla Capital Ltd and Sun Life Financial Inc, a leading international financial services organisation from Canada.