Mahindra Finance said it has received a license to operate Mutual Funds via its subsidiary Mahindra Asset Management Company.
Mahindra Finance is currently engaged in vehicle financing, and is part of the Mahindra Group. It plans to tap into its existing network of dealers and customers to sell its mutual fund products.
“Our customer base of nearly 4million and over 1200 branches of Mahindra Finance will play a critical role in ensuring success in the mutual fund business through best in class customer service,” said Ramesh lyer, the Financial Services sector President of the Mahindra Group and the Managing Director of Mahindra Finance.
“Our investment in the mutual fund business is intended to be long term in nature. We will adopt a developmental approach and build the mutual fund market in smaller towns and rural India,” said V. Ravi, Executive Director, Mahindra Finance.
“We believe there is a great opportunity to convert physical assets, which are generally illiquid into productive, financial assets.”
The Mahindra Asset Management Company is in the process of putting together its team, product portfolio and strategy for market entry, which will be announced in due course, it said.
It was, however, made clear by Mr. Ashutosh Bishnoi, Managing Director & CEO that the focus of the business will remain in the same markets where Mahindra Finance is currently focused.
He said, “The semi-urban and rural markets will remain the priority for the Mahindra Mutual Fund. We believe that investors in these markets have an even greater savings potential than urban markets, but they do not have either the access or awareness of market related financial instruments such as mutual funds. So our task will be to create access and awareness. With the proven success and strength of the relationships that Mahindra Finance already has we believe that we are well poised to take this business forward in same markets”.