Motilal Oswal Financial Services today said it is planning to launch its first scheme by the next quarter of this fiscal through its mutual fund arm Passionate Investment Management Ltd.
The company's product development team is working on the format and sorts of the product, Motilal Oswal Managing Director Raamdeo Agarwal.
"We are likely to invest Rs 50-100 crore over a period to launch and promote our mutual fund. We are not looking for any global alliance and go for it alone," he said.
Agarwal said despite the global downturn there is a good demand for mutual fund products in the market currently.
"Even as there are a few established players in the business, the industry is large enough to accommodate new players. Mutual funds are one of the best financial instruments to multiply the capital. But people need good managers to manage their funds. With our experience in the industry, we are sure people will embrace us," he said.
Edelweiss Capital and Religare AEGON are among major the broking firms, which are already in the mutual fund business.
The company, meanwhile, maintained that it would continue to invest in companies across all sectors through the company-managed Rs 600-crore India Business Excellence Fund.
"We have plans to invest in 12-15 companies in the range of USD 5-15 million. So far, we have provided capital to eight companies including Dixon, Time Technoplast and IMP Power. Our investment in these companies will get converted into equity shares in later stages," Agarwal said.
