 "Trust Asset Management targets Rs 10,000 crore AUM in first 2 yrs")
Trust Asset Management Company, the latest to enter the already cluttered Rs 30-lakh-crore mutual fund industry with 44 payers, plans to launch its maiden fund within a couple of weeks and garner an AUM of around Rs 10,000 crore in the first two years of operations, says a top official.
The fund house, which had announced a soft launch earlier this month, is awaiting the Sebi nod for its maiden scheme from which it plans to gather at least Rs 500 crore.
"We hope to hit the market in a couple of weeks with our first scheme as we are expecting regulatory go-ahead for our first scheme anytime now. Over the next 24 months, we will be launching six to eight funds and hope to collect Rs 8,000-10,000 crore in AUM," Sandeep Bagla, the chief executive at Trust AMC, told PTI on Tuesday.
Bagla, who has spent 25 years across fund houses, primary dealers, and financials like ICICI Securities, AIG Mutual Fund, Reliance MF, Principal AMC etc, feels that with 44 fund houses the domestic mutual fund industry has lots of space for more players, especially more room differentiated players like Trust AMC, which will be offering long only funds.
On the back of adding a record Rs 2 lakh crore inflows in November, the AUM crossed for the first time the Rs 30-lakh crore mark and a recent Crisil report had forecast it to clip at over 70 per cent in the next five years to Rs 50 lakh crore. But over 90 per cent of the AUM is held between the top five players, with the rest being just about in the fringe. And so is the investor profile as vast majority of them come from the top 15 cities.
"Initially we will have only fixed income funds, others assets will come after we gather a critical mass of folios, which we expect to attain over the next 18-24 months and the first scheme will be hitting the markets in a few weeks," Bagla said, adding initially they will be selling only fixed income products.
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They will market as a more objective, safer, more predictable and therefore more consistent fund house, he said.
The AMC offers a broad-based model portfolio created by Crisil, for which it has tied up with the largest rating agency.
Trust group is known for financial innovation particularly in fixed income and debt markets.