Tata MF targets Rs 11,000 cr assets

Tata Mutual Fund has targeted a Rs 11,000 crore asset base by 2004-05, to be achieved through organic growth and acquisitions.

"We have targeted an asset base of Rs 11,000 crore for 2004-05 against Rs 5,500 crore in 2003-04. The thrust, however, would be the organic route through expansion of reach as well as products," Ved Prakash Chaturvedi, chief investment officer, said.

He said the fund was looking at doubling its customer base from 3.5 lakh to seven lakh by the end of the year.

"We are open to acquiring assets from other mutual funds as and when they are available. This would help us in enhancing our base to the extent we have targeted in the next couple of years. The funds we take over will however have to match our portfolio and our expectations," he added.

Asked whether Tata MF was eyeing any specific funds as of now, he said, "We are on the lookout and we would acquire funds as and when we have the opportunity." He, however, clarified that the company was yet to enter into talks with any potential takeover candidate.

Ved Prakash also clarified that Tata MF was not keen on a stake in SBI Mutual Fund which was on the blocks, neither has it bid for GIC Mutual fund.

The fund has come a long way from 2002 with a small sum of Rs 800 crore under management to Rs 5,500 crore in 2004.

The company has also sometimes back launched a new fund "" Tata P/E fund to enhance its portfolio and the scheme is expected to bring an additional Rs 400 crore to the corpus. It is also expected to add another 60,000 customers to its clients list.

Talking about the industry, Ved Prakash said the fund industry has matured a lot in recent times. "Investors have indeed matured and have a long-term perspective for their investment," says Chaturvedi.

He said a prudent mix of debt, and equity investment was needed in every portfolio in proportion to the risk profile determined by the client. He also stressed on the importance of regularly adjusting ones portfolio to maintain the debt and equity proportion.