ASK Investment Managers, Monarch Networth apply for mutual fund licence

Blackstone-backed ASK Investment Managers and financial service firm Monarch Networth Capital have applied with market regulator Securities and Exchange Board of India (Sebi) for a mutual fund licence.

 

While Monarch Networth Capital filed its application on December 31, 2024, ASK Investment Managers had applied in October 2024, according to Sebi. 

ASK is one of the leading asset managers in India catering to high-networth individuals (HNIs) and ultra HNIs through portfolio management services (PMS) and alternative investment funds (AIFs). 

Monarch Networth, which is active in stock broking, MF distribution, and other financial services, plans to offer active schemes once it receives Sebi nod. 

 

“We already have around 300,000 retail clients. We will try to capitalise our presence in the retail segment. We also have the experience of managing three schemes in the AIFs. As we now have enough experience of fund management, it makes sense for us to enter MFs. At later stages, we may look at opportunities in the new investment class,” said Gaurav Bhandari, CEO, Monarch Networth. 

The slew of new applications indicates rising competition in the industry, which currently has over Rs 68 trillion assets under management. 

Industry players said that financial awareness has led to a rising investor inclination towards mutual funds.

 

They are of the opinion that though there are around 47 fund houses in the Indian market, there is scope and space for others to grow and offer different investment strategies.

 

Several experts have added that once the new asset class between AIFs and PMS with unique investment strategies is active, many other players may also explore opportunities. 

Further, the market regulator has introduced norms to facilitate easier registrations for fund houses planning to only launch passive schemes with MF Lite regulations.