Peerless Funds Management Co Ltd (PFMCL) today said it has commenced its mutual fund operations and hopes to break-even in the next 4-5 years.
PFMCL is a wholly-owned subsidiary of Kolkata-based Peerless General Finance & Investment Company, a leading non-banking financial company with branches across India.
"There is a strong growth prospect in the mutual fund business. It is estimated that assets under management (AUM) will grow at a rate of 15 per cent annually between 2010 and 2015. We hope to break-even in the next 4-5 years," Peerless Funds Management Co Ltd, Chairman, A C Chakrabortti told reporters here.
He said the organised mutual fund business was still highly concentrated in metros and considerable opportunities exist in Tier II, III and semi-urban markets.
PFMCL will launch two debt-oriented products called liquid fund and ultra short term fund for institutional investors as early as next week.
"We have received SEBI approval for two retail products. Currently, there are some regulatory formalities pending. We plan to introduce them in the first week of April," Chakrabortti said.
Peerless will be the fortieth player in the Indian mutual fund industry, which has about 8 lakh crore of assets under management.
Peerless has appointed four vendors in its new venture. While HDFC Bank will manage the company's banking operations and collections and redemptions, Deutsche Bank will help in overall functioning, he said.
Karvy has been appointed as the Registrar, while Ernst & Young will be in-charge of preparing system back-up support and essentials of daily functioning, Chakrabortti said.
Peerless General Finance & Investment Co Ltd, the sponsor or parent company of PFMCL, has already committed Rs 50 crore to be utilised for setting up 31 branches and other operating expenses.
PFMCL has 20,000 agents and 80 lakh live accounts. It has been selling mutual fund products of other asset management companies through a network of 148 branches of its parent company.
