Carnelian Asset targets $2 bn AUM by FY26, plans expansion in 7 cities

Carnelian Asset Management & Advisors aims to increase its asset under management (AUM) to $ 2 billion by March next financial year, notwithstanding the current subdued market sentiment.

The entity, which manages funds of high networth individuals, also plans to expand its reach in seven new cities during the next financial year.

"We hope to touch AUM of $1.2 billion by this month end and $ 2 billion by the end of next financial year," Carnelian Asset Management & Advisors founder Swati Khemani told PTI.

Asked if the subdued market sentiment has impacted fund flow, she said, most of the investors feel that this is a temporary phenomenon and it should be corrected during the course of next financial year.

Most investors of Portfolio Management Services and Alternate Investment Funds are having deep pockets and their investment horizon is medium to long-term.

To attract overseas money, Khemani said, Carnelian Asset Management & Advisors has set up an office in GIFT City, Gandhinagar in August last year.

With regard to expanding its branch network, she said, it has offices across nine cities presently and should go up to 15-16 by the end of March 2026.

The advisory firm is exploring options in states like Uttar Pradesh, Rajasthan, Punjab, Assam and Odisha among others to expand distribution channels.

Sharing outlook for the market, she said, "we believe the current environment is reminiscent of the first half of 2022, when the market corrected after a stellar performance in 2020/2021. Nifty corrected from 18,500 to 15,500 (April 2022 to June 2022) in the initial phase of the Russia-Ukraine war. Geopolitics and inflation were the prime global concerns."  The current environment offers a similar risk reward with Nifty correcting from 26,500 to around 22,000, she said, adding, some pockets of froth are still around but interesting risk-reward opportunities are appearing on the horizon and this vintage of next few months will be highly rewarding.