After receiving requisite approvals from the capital markets regulator Securities and Exchange Board of India (SEBI), Mahindra Asset Management Company (AMC) has decided to turn its focus on rural and semi-urban markets. A wholly-owned subsidiary of Mahindra and Mahindra Financial Services, AMC is also contemplating to set up its products and marketing.
The company is believed to have in focus semi-urban markets, which already having a strong presence of its non-banking lender parent Mahindra Finance. AMC is latest Indian conglomerate to enter the mutual fund segment.
Mahindra AMC Managing Director and Chief Executive Ashutosh Bishnoi said that a majority of investors from semi-urban and rural markets are new to mutual funds. “The company wants to cater to the investment needs of the people residing in rural and semi-urban areas of the country”.
“We are targeting both the service class and self employed people in semi-urban and rural parts of the country. In order to make our products a huge success and easy-to-understand, products would be launched in regional languages. We have created a product for each customer profile,” he remarked.
According to reports, smaller towns have contributed 44 per cent of total inflows in the past fiscal.
The company has filed requisite papers with the SEBI for launching at least four schemes—Mahindra MF Bachat Yojana, Mahindra MF Kar Bachat Yojana, Mahindra MF Bal Vikas Yojana and Mahindra Liquid Fund.