Reliance Mutual Fund, a part of the Anil Dhirubhai Ambani Group, has tied up with Bank of Baroda for distribution of mutual fund schemes through their branches in the Gulf Co-operative Council region, the company said in a release.
"Changing investment habits has now turned our attention towards quality distribution. The situation is in a way a reflection of the increased acceptance of our mutual fund schemes among our overseas investors. The pie is widening and hence the decision to tie-up with Bank of Baroda to ensure we reach all our customers," Reliance Mutual Fund Deputy CEO Sundeep Sikka said.
Public sector BoB already has six branches in the UAE. "The tie-up is an extension of the distributor relationship between Reliance Mutual Fund and BoB in India. We are confident that this partnership will bring in more investors towards our schemes and build confidence among them," Sikka added.
With the domestic bourses suffering a loss of over 33 per cent so far this year amid global slowdown and inflationary pressures, fund houses in the country are on the lookout for greener pastures in the overseas market.
Experts believe that though the strategy of diversifying the risks by widening horizon is not a new one but the current market meltdown has led leading fund houses like Reliance Mutual Fund to apply for licenses abroad.
Last month, Reliance Mutual Fund CEO Vikrant Gugnani had said that the firm had got a license to operate in the UK.
Reliance MF which had crossed the Rs one lakh-crore mark in its assets under management in April, has not been able to sustain it, with its average AUM for June falling to Rs 90,813.45 crore.
