Private player Axis Mutual Fund is aiming at more than doubling the size of assets under its management to Rs 10,000 crore by March-end and is looking at entering the overseas markets next year.
"We will come out with a new fund for overseas market named Foreign Currency Denominated Fund by early next fiscal ... This year we expect our AUM to touch Rs 10,000 crore," Axis AMC Managing Director and CEO Rajiv Anand told PTI.
"The fund would be based outside India wherein overseas investors will be able invest in the fund which would in turn invest in Indian equities," he added. Axis MF currently has a distribution centre in Dubai.
On Axis MF's India plans, he said, "We hope that our investor base will double to 3 lakh by the end of the current fiscal... We expect our AUM (assets under management) to touch Rs 10,000 crore by then."
Axis, which got Sebi approval for MF business in September, 2009, currently has AUM size of around Rs 4,000 crore. It already has 7 schemes in the market, which it expects to increase to 10 by March 31, 2010.
Anand said, the fund would be among top 10 players in the country within a few years.
The fund house would launch 2 or 3 more products during this fiscal and they would be a mix of debt and equity.
"We already have product approval for Axis Triple Advantage Fund which we plan to launch next month," Anand said, adding that besides the launch of new products, the company would file for three more products.
The Axis Triple Advantage Fund would be a hybrid fund that would invest 30-40 per cent each in equity and fixed income product, and the rest in gold.
Anand said Axis MF may need to hike its equity base, depending on the requirements. The fund currently has an equity base of Rs 75 crore, which could be raised to about Rs 125 crore in two years. "We may need another Rs 25-50 crore in the next two years to firm up our equity base, but that would depend on how our AUM and investor base grows."
On whether Axis MF is looking for a foreign partner, Anand said, "If at a stage we feel there is a need, we will look at it. But capital is not a problem for us as Axis Bank is there." Axis MF is 100 per cent held by Axis Bank.
At present, seven of the top 10 mutual funds have foreign partners, with Indian players holding the controlling stake. Besides, Franklin Templeton Asset Management India is the only 100 per cent foreign-owned asset manager among the top 10.
Anand said Axis MF is looking at becoming the top 10 player in the next 4-5 years. By then, the MF industry size is expected to grow over three-fold to about Rs 25 lakh crore.