Tata Asset Management Ltd, a Tata group company, is eying growth of around 35 per cent in the near future, well above the overall industry growth rate of around 30 per cent year-on-year, said a senior company executive.
Speaking to the reporters while announcing the launch of Tata Mutual Fund's retirement specific mutual fund scheme in Tamil Nadu on Saturday, Sanjay Sachdev, president and chief executive, Tata Asset Management Ltd, said, “The asset management business is growing rapidly and we have reported Rs 16,875 crore assets under management in December last year, which has now grown to around Rs 22,700 crore. We expect to grow above industry rates.” The company currently accounts for around 18 to 20 funds.
The total asset management industry currently stands at Rs 7.12 lakh crore and is expected to reach Rs 30 lakh crore in the next five years. With the Securities and Exchange Board of India trying to bring stability on regulations in the segment, the industry is expected to witness better growth in the future. The industry had earlier been experiencing challenges from the volatile regulatory situations, he added.
Tata Retirement Savings Fund, launched on Saturday, is an open-ended fund comprising three plans, with a plan with 85-100 per cent equity and zero to 15 per cent debt allocation, a second plan with a mix of debt and equity and another in which debt has more emphasis. With the expected increase in population of the country's elderly expected to grow in the future and the average life expectancy rising, there is a need for creating awareness among the people to save for their retirement period, said Sachdev.