Khushboo Tiwari/Business Standard
Blackstone-backed
ASK Investment Managers and financial service firm Monarch Networth
Capital have applied with market regulator Securities and Exchange Board
of India (Sebi) for a mutual fund licence.
While
Monarch Networth Capital filed its application on December 31, 2024,
ASK Investment Managers had applied in October 2024, according to Sebi.
ASK
is one of the leading asset managers in India catering to high-networth
individuals (HNIs) and ultra HNIs through portfolio management services
(PMS) and alternative investment funds (AIFs).
Monarch
Networth, which is active in stock broking, MF distribution, and other
financial services, plans to offer active schemes once it receives Sebi
nod.
"We already have around 300,000 retail
clients. We will try to capitalise our presence in the retail segment.
We also have the experience of managing three schemes in the AIFs. As we
now have enough experience of fund management, it makes sense for us to
enter MFs. At later stages, we may look at opportunities in the new
investment class," said Gaurav Bhandari, CEO, Monarch Networth.
The
slew of new applications indicates rising competition in the industry,
which currently has over Rs 68 trillion assets under management.
Industry players said that financial awareness has led to a rising investor inclination towards mutual funds.
They
are of the opinion that though there are around 47 fund houses in the
Indian market, there is scope and space for others to grow and offer
different investment strategies.
Several
experts have added that once the new asset class between AIFs and PMS
with unique investment strategies is active, many other players may also
explore opportunities.
Further, the market
regulator has introduced norms to facilitate easier registrations for
fund houses planning to only launch passive schemes with MF Lite
regulations.