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After posting an impressive 17% rise in business in the second quarter, LIC Nomura Mutual Fund aims to cross the Rs 15,000-crore mark in absolute AUM collection in the current quarter, a 50% growth q-o-q with focus on new client addition, a top official said.
"In average AUM terms, our fund house has shown 17% growth in the September quarter over the previous period. We aim to increase our absolute AUM, to cross Rs 15,000 crore by the end of the December quarter," Chief Executive Nilesh Sathe told PTI here.
By the end of the September quarter, the fund house had an average AUM of Rs 7,975.68 crore, up 17% over the first quarter.
On absolute terms, it has crossed Rs 10,000 crore by the end of September quarter.
The mutual fund industry reported a 4.5% drop in average AUM to Rs 8.08 trillion by the end of September quarter with 34 fund houses reporting fall in average AUMs.
On the reasons for rise in average AUM, Sathe said banks and financial institutions are again coming back and investing in various short-term debt schemes after deserting the fund houses due to poor returns.
"Banks and financial institutions have again started investing in our debt schemes. We are also witnessing some traction in retail participation," he said.
As part of its plan, the company aims to add around 40 new clients in the current quarter with focus on adding retail clients.
LIC Nomura MF is an alliance between insurance major LIC and Japanese Nomura with LIC holding 65% stake.
