MFs plan more equity-oriented funds to cash in on market rally

Sensex has been best performing index so far this fiscal, rallying by over 32% in dollar terms year-to-date

Enthused by the ongoing rally in the stock markets, mutual fund houses are bullish about industry growth driven by equity-oriented funds.

It may be noted that the Sensex has been the best performing index so far this fiscal, rallying by over 32% in dollar terms year-to-date.

Despite concerns over "tapering", FIIs have been pumping money into domestic equities, which have crossed $13 billion, making India one of the largest recipients amongst emerging markets.

MF Players like ICICI Asset Management Company and Union KBC Asset Management Company plan to launch more equity-oriented funds to cash in on the boom.

Union KBC Asset Management Company, which at present manages six funds, including three funds in the mid and small-cap categories in equities alone, plans to launch two more funds by the end of the fiscal, including an equity fund and a capital protection fund.

"We have plans to launch two more products by the fiscal-end. While the first one will be in the equity category, the other one will be a capital protection fund falling under the fixed income category," Union KBC AMC chief executive G Pradeepkumar told PTI on the sidelines of an industry event here over the weekend.

Union KBC AMC has a customer base of 1,25,000 and plans to take it to 30 lakh over the next five years.

"We are looking at adding 50,000 folios to our current 1,25,000 folios by the end of current fiscal itself. Moreover, we are looking at taking at least 10% of the 3-crore odd customer base of Union Bank of India over next five years," he said.