International BusinessEntry load abolition will benefit MF industry: Religare AMC
Private sector mutual fund house Religare AMC, a relatively new but fast-growing player, today said that abolition of entry load charged to investors will benefit the company and the industry as a whole.
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"The abolition of the entry load this year is expected to bring about a sea change in the way the AMC business functions," Religare Asset Management Company"s CEO and MD Sunil Godhwani said.
The development would benefit Religare"s mutual fund business going forward, he added.
The company has increased its market share to 2.2 per cent from 0.8 per cent, while its assets under management (AUM) have grown to $2.96 billion (around Rs 14,500 crore) for August 2009 from $300 million in November 2008.
While the company remains a small player compared to many others, it has moved up to the 13th position among the three dozen AMCs operating in India. It had entered the segment with acquisition of Lotus AMC in November 2008.
"The success story of the AMC business is reflective of our style of managing various businesses as well as the way we have empowered our capable management team that crafted the success story," Godhwani said.
Religare AMC has more than 2,00,000 clients and a presence in more than 50 cities. Combined average AUM of the country"s 36 fund houses have reached Rs 7,49,911.91 crore at the end of August.