Daiwa aims to treble AUM in 18 months

Daiwa Mutual Fund, which replaced Shinsei Mutual Fund after Daiwa Securities Group bought out Shinsei Mutual Fund (India), is targeting assets under management (AUM) of close to Rs2,500 crore in the next 12-18 months.

The fund house which started operations in January, is targeting breakeven in three years.

“Our current AUM is roughly `700-800 crore with our four funds. I think we will be happy if we could grow to around `2,500 crore in the next 12-18 months,” Piyush Surana, chief executive officer, Daiwa Mutual Fund told DNA.

Surana said that, “We would certainly be happy if we could break even in three years from now.”

Daiwa MF has four funds namely liquid fund, industry leaders’ fund, treasury advantage fund and government securities fund - short-term.

“We will complete our bouquet of products in the next 12-18 months. We will launch more products in the equity side and fixed income side,” said Surana, adding that the fund house will probably have 2 more products on the equity side and 3-4 products on the fixed income side. There may also be a hybrid product.

Daiwa Mutual Fund currently has its head office in Mumbai and branches at Ahmedabad, Delhi, Kolkata and Bangalore. It will soon add two more branches at Pune and Chennai.

Surana feels the partnership of a bank in a mutual fund business certainly helps. “Today having a bank as a sponsor for shareholder provides the potential to the fund house to leverage the distribution. That is the direct advantage. Besides that there are also other indirect advantages in terms of relations that can be built,” Surana said.