Standard Chartered was known as the only fund house with no equity funds.
That is about to change.
The Asset Management Company has received the requisite regulatory approvals from the Securities and Exchange Board of India to enter the equity fund management business.
Five years ago the AMC began with debt funds and as on April 30, the total assets under management amounted to around Rs 8,650 crore.
The fund is now set to enter the equity market.
Naval Bir Kumar, Managing Director, Standard Chartered AMC spoke on how the investor perception towards equity has changed over the years.
In the past, retail investors would enter the market towards the fag end of the rally and lose out. However, as interest rates have dropped, investors are considering equity to be part of their portfolio.
As a result, the Systematic Investment Plans and Systematic Transfer Plans have increased as a proportion of total mutual fund sales.
The AMC plans to come out with its first diversified equity fund by June end or early July. The initial thrust will be more on processes and systems rather than the product structure.
Only later will sector funds and other product offerings be considered.