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Volume IconBaroda BNP Paribas MF's Suresh Soni on markets and more

Baroda Mutual Fund and BNP Paribas Mutual Fund recently merged to become Baroda BNP Paribas Mutual Fund. Its CEO Suresh Soni spoke to Krishna Veera Vanamali on markets and the mutual fund industry

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Q1: Can you give us your outlook for the markets currently? How long do you think the volatility may continue and do you think the Indian markets are still overvalued?
Ans:
>After a sustained rise, equity markets continue to move sideways from November last year
>Markets witnessed FII outflows of about $30 billion
>Despite geopolitical uncertainties, rising commodity prices and Fed rate hike, markets have held relatively well
>Valuations at an average of the past five years now
>In the near term, sideways movement will continue in markets
 
 
Q2: The merger has come into effect after two years. So what do you see as the strengths of this merged entity and what vision do you have for it?
Ans:
>The merger brings along the strengths of two large institutions that are backing it
>The AMC will benefit from the institutions’ strength in asset management, risk management and investment processes
>This is, in a way, a reset point in the life of the asset management company
 
Q3: Post the merger, what does your new product pipeline look like? Where are you seeing opportunities ahead?
Ans:
>Following the merger, the existing product pipeline becomes stronger
>Present product line: 28 schemes across equity, fixed income and hybrid category
>Aims to bridge product gaps in the next six to twelve months
 
Q4: Are you planning to enter the index funds space?
Ans:
>Passive market has seen disproportionate growth
>Witnessed a growing trend in favour of passive funds over the last few years
> Passive market is an area which the fund is watching with interest
 
Q5: Several new players are entering the space. Is there scope for everyone to grow in this asset management industry in India?
And:
>The differentiator for Baroda BNP Paribas Mutual Fund is the institutional backing of Baroda Asset Management India and BNP Paribas Asset Management India
>Bank of Baroda has been around in India now for more than 110 years
>BNP Paribas Bank has been around in India for more than 160 years
>However, Baroda BNP Paribas Mutual Fund will operate with the energy of a start-up
>Mutual funds are still very under-penetrated
>Mutual funds are owned by less than 2% of the population of this country
>Number of unique investors in mutual funds would be between two and a half to three crores
>There is scope for everybody to grow in the mutual funds market
 
Q6: Do you foresee further consolidation in this industry?
Ans:
>This is a business of scale
>This is an industry that lends itself well for consolidation as well as growth
> In the current setting, there will be more growth acquisitions in the industry
 

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First Published: Mar 29 2022 | 8:30 AM IST

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