Mahindra AMC eyes Rs 7,000 cr assets

​Hyderabad: Mahindra Asset Management Company on Monday said it set a target to handle assets under management of about Rs 7,000 crore and increase its presence to 500 cities during the current financial year.

"We are expecting Rs 6,500-Rs 7,000 crore of AUM (assets under management) by March 2019 from Rs 4,500 crore AUM in June 2018. Out of this, Rs 1,500 crore is in retail equity," Ashutosh Bishnoi, the company’s Managing Director and CEO, said here after launching new open-ended debt scheme 'Mahindra Credit Risk Yojana'.

On expansion plans, he said, "in two years time, we reached 400 cities and we would like to take that number to 500 by this financial year-end". "In five years, we want to be selling in 1,500 cities and may be in a few villages also. The objective of Mahindra Mutual Fund is to go to smaller towns", he said.

The Mahindra Credit Risk Yojana scheme is targeted at investors who seek reasonable income and capital appreciation over medium and long term. The fund predominantly investing in AA and below rated corporate bonds is for investors seeking capital appreciation over medium to long term.

Bishnoi said: “We provide investors an opportunity to invest in well diversified debt portfolio of fundamentally strong, high liquid and well-known companies. We believe the scheme offers an attractive long-term investment opportunity, hence, investors seeking reasonable income and capital appreciation must participate in the offered scheme.” 

The mutual fund company aims to invest in quality instruments of moderate to high safety investment grade, to generate optimum returns at lower risk. 

The scheme would invest minimum of 65 per cent in AA and below rated corporate bonds, excluding AA+ rated corporate bonds. While it would also invest up to 35 per cent in debt and money market instruments, which includes securitised debt up to 30 per cent of the net assets of the scheme and up to 10 per cent in units issued by REITs and InvITs.

The new fund offer opens on July 27 and closes on August 10, 2018. It would reopen from continuous sale and repurchase within five business days from the date of allotment.