Essel Mutual Fund, a part of leading private sector financial services firm Essel Finance, will be launching four to five new funds in the market in the upcoming financial year.
The mutual fund company, which currently has close to Rs 2,000 crore in assets under management (AUM), is awaiting approval from the market regulator Securities and Exchange Board of India (Sebi) for its first offering 'Essel Equity Hybrid Fund' and plans to launch it in April 2018.
Rajiv Shastri, chief executive officer, Essel Finance AMC Ltd, told DNA Money, "Essel Equity Hybrid Fund, when it gets approved by Sebi, proposes to invest 65% in equity and equity-related instruments. And the balance 35% will be in debt and debt-related instruments. The aim is to provide more stable returns compared to pure equity funds."
The equity investment, according to Shastri, will not have market capitalisation or sector bias. As for debt investments, it will mostly be accrual-based with a flavour of duration risk as and when advisable.
"Given the current market conditions and nature of the product, both systematic investment plan (SIP) and lump sum options are possible. If it was a high-risk product, in today's market condition, I would say that one should stick with SIP. However, this is a moderate risk product with 35% in debt instruments as well, so one can look at both options," said Shastri, adding that minimum amount for lump sum is Rs 1,000 while it is Rs 500 for SIP.
On retail interest in this new fund offering in the market, Shastri said, "At this point in time, we are awaiting approval post which we will firm up the tie-ups. I think we will have a more firm feedback from our distribution partners once we get closer to launch. As of today, we have 1,500 distributors working with us. This used to be a much smaller number six months ago and it has grown substantially. We are adding more distributors on a monthly basis and growing it even further before we launch the products."
Given the nature of the product, Essel Mutual Fund is expecting good retail investor participation from across the country. "We are particularly strong in the B15 cities and are hoping that the smaller locations would support us in this endeavour," he said.
In terms of a breakup of its current assets under management across nine existing products, Shastri said that 40% is in retail and the balance 60% is in institutional products.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Rajiv Shastri")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}