 "We're aiming at a fivefold AUM jump over 3 years: Jisang Yoo")
Mirae Assets (India), the South Korea-based fund, has set aggressive growth targets for the next few years. Jisang Yoo, chief executive officer, tells Chandan Kishore Kant about these plans. Edited excerpts:
Some foreign asset management companies (AMCs) have exited India. What are your plans?
We are not wrapping up the India AMC business. It appears people are trying to shake our business by these rumours. We are in a healthy position, with both profits and assets growing. Our net worth is around Rs 140 crore. We were the most capitalised AMC in India when we had set up. Globally, we are bigger than the top players here in India.
What is your road map to growth?
We have good performing funds and the sector knows that. Last year, we saw over 200 per cent growth in assets under management. We broke out from the small fund house category and are at 20th position of the 43 AMCs. The net inflows to our funds are continuous.
What would be the break-up for your Rs 1,500 crore AUM (as on December)?
Currently, 90 per cent of our AUM is in equity. We plan to do more of fixed income this year. In the next two to three years, we aim to have 60 per cent in equities and the rest in fixed income. India is a big country and requires more people and more branches to service clients. Compared to other players, we have less of both.
How was last year in investor inflow?
In 2014, we had Rs 600 crore of net inflows in equities. We witnessed net outflows from our equity schemes for less than 10 days. The majority of our investors are retail ones. High net worth investors have joined recently and because of that, we are growing faster. We had around 50,000 folios, now around 80,000. SIPs (Systematic Investment Plans) have grown 200 per cent over the past year.
What locations are you targeting, say in the next two-three years?
We can’t decide in one shot to go to 20 cities. We have to test the market and make a fair business plan. We currently have a presence at 15 locations. We have also stepped in beyond the top 15 (B15) cities. Why do I need to go all over India? Mumbai is a far bigger market.
The regulator wants MFs to reach out beyond the top cities.
About 12 per cent of our businesses is from B15, not a small amount. Compared to some peers, we are higher in terms of percentage of AUM from B15. In three years, we want an AUM of about Rs 7,000 crore. We can’t only be judged by the number of locations.
Mirae Assets has been silent on new fund launches. Do you plan any?
We have eight funds now - three domestic, two international equity funds and three fixed income funds. Our strategy is a bit different. We do not want to gather AUM by new fund offers (NFOs). Our strategy has been to make a track record and show it to the market. Our AUM is up 260 per cent without any NFO. We are getting money in our existing funds due to our performance. We will launch funds in the fixed income segment.
Some foreign asset management companies (AMCs) have exited India. What are your plans?
We are not wrapping up the India AMC business. It appears people are trying to shake our business by these rumours. We are in a healthy position, with both profits and assets growing. Our net worth is around Rs 140 crore. We were the most capitalised AMC in India when we had set up. Globally, we are bigger than the top players here in India.
What is your road map to growth?
We have good performing funds and the sector knows that. Last year, we saw over 200 per cent growth in assets under management. We broke out from the small fund house category and are at 20th position of the 43 AMCs. The net inflows to our funds are continuous.
What would be the break-up for your Rs 1,500 crore AUM (as on December)?
Currently, 90 per cent of our AUM is in equity. We plan to do more of fixed income this year. In the next two to three years, we aim to have 60 per cent in equities and the rest in fixed income. India is a big country and requires more people and more branches to service clients. Compared to other players, we have less of both.
How was last year in investor inflow?
In 2014, we had Rs 600 crore of net inflows in equities. We witnessed net outflows from our equity schemes for less than 10 days. The majority of our investors are retail ones. High net worth investors have joined recently and because of that, we are growing faster. We had around 50,000 folios, now around 80,000. SIPs (Systematic Investment Plans) have grown 200 per cent over the past year.
What locations are you targeting, say in the next two-three years?
We can’t decide in one shot to go to 20 cities. We have to test the market and make a fair business plan. We currently have a presence at 15 locations. We have also stepped in beyond the top 15 (B15) cities. Why do I need to go all over India? Mumbai is a far bigger market.
The regulator wants MFs to reach out beyond the top cities.
About 12 per cent of our businesses is from B15, not a small amount. Compared to some peers, we are higher in terms of percentage of AUM from B15. In three years, we want an AUM of about Rs 7,000 crore. We can’t only be judged by the number of locations.
Mirae Assets has been silent on new fund launches. Do you plan any?
We have eight funds now - three domestic, two international equity funds and three fixed income funds. Our strategy is a bit different. We do not want to gather AUM by new fund offers (NFOs). Our strategy has been to make a track record and show it to the market. Our AUM is up 260 per cent without any NFO. We are getting money in our existing funds due to our performance. We will launch funds in the fixed income segment.