IL&FS Mutual Fund, a relatively new entrant into the mutual fund sector, is planning to launch three new schemes in the current fiscal. The fund also aims at reaching a critical mass size of Rs 800 crore in terms of assets by the close of the year.
With assets of a modest Rs 300 crore managed by four schemes, the fund is slowly trying to improve its visibility while increasing the portfolio of schemes under its management.
Ramgopal, chief investment officer (fixed income), said the fund is planning to launch a gilt scheme, a fixed maturity plan scheme and an index fund. At present, the schemes under its management are IL&FS Growth & Value Fund (Rs 68 crore), IL&FS eCom Fund (Rs 40 crore), IL&FS Bond Fund (Rs 100 crore) and IL&FS Liquid Account (Rs 80 crore).
Ramgopal said, with a renewed interest in the equity market now would be the best time to launch an index fund. Gilt prices have become more stable than in September so the fund managers feel that once again interest in them would be revived. On the investment strategy of the AMC, Ramgopal said the goal was to attain balance between equity and debt funds.
The downgrading in the ratings of debt papers and the poor quality of paper in the market are expected to continue for some more time, Ramgopal said, however, the fund managers have chosen to compromise on the yields rather than the quality of investments. "It is always easier to get a higher yield and go in for a poorer quality paper, but we have decided to settle for a lower yield and stick to triple A-rated instruments," he said.
The asset management company is also holding talks with the web trading portal of IL&FS, Investsmartindia.com for selling its schemes online. However, this is still in the planning stage.
Distribution and service centres are also being set up in cities such as Ahmedabad, Pune, Hyderabad and Bangalore, while it already has offices in the four metros.
