Registration has been granted to Edelweiss Mutual Fund and approval has been granted for Edelweiss Asset Management Ltd to act as investment manager to Edelweiss Mutual Fund.
The company hopes to make inroads in the segment with innovative customer-specific solutions. The Sebi approvals come at a time when there is huge potential in the market, which according to its chief executive officer, Jimmy A Patel is currently underserved.
"The Indian mutual fund industry has been growing at a rapid pace of 47 per cent year-on-year over the last five years. However, current penetration levels are just 3-4 per cent, clearly indicating the vast untapped potential," Patel said.
Edelweiss Asset Management plans to launch eight to nine products over the next 12 months. The product portfolio will include broad based equity funds, structured products, arbitrage funds, ETFs, and other innovative fixed income and equity funds in line with requirements of the market, the release said.