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Mumbai, June 9 Shinsei Mutual Fund, the first Japanese-based sponsored mutual fund plans to launch three schemes in the next two months. The fund house got SEBI’s nod to launch these products.

“We plan to launch an equity fund, a bond fund and a liquid fund within the next two months, perhaps even sooner,” said Mr N. Sethuram, Chief Investment Officer of Shinsei Mutual Fund, said.

Shinsei Mutual Fund is among the first of the new funds to set up shop in India, post stock market revival in the last two months. At least five other players plan to set up business in the coming months.

“If you look at the bottom of the pyramid, mutual fund penetration is non-existent and you need to pitch very simple products there so that people can understand them clearly and use mutual funds to take exposure to different asset classes like equities,” said Mr Piyush Surana, Chief Executive Officer of Shinsei Mutual Fund.

“We are planning to launch six-eight funds over the next 18 months and create a presence in the top seven-eight cities,” said Mr Surana.

The fund house plans to launch its PSU Bond Fund, which will invest primarily in PSU bonds. “This will take care of the credit quality because there is a lot of concern over credit quality,” said Mr Surana.

The ‘Industry Leaders Equity fund’ is going to be identifying companies which are leaders in their segments.

“Apart from being defined by stocks with large market cap, it will also be defined by highest growth rates and highest profitability in a three-five year term,” said Mr Sethuram.

“Normally the highest growth rates and profitability may not be with the large caps so we will be having a slight mid-cap touch in our fund,” said Mr Sethuram..

The third fund, liquid ultra short-term category whose maximum maturity is one year, is just going to be a parking lot for corporates and institutions, he added.

The margins in the mutual fund industry have been shrinking so it is becoming a tougher business. Costs have been escalating although in the past six-eight months they have become more realistic, feels Mr Surana.

The fund house, which expects to attain the break even levels in not less than three years at least, is also focussing on other streams of revenues.

According to Mr Surana, the asset management fee, PMS business and the offshore fund advisory are big sources of revenue.

“Having a foreign sponsor we have planned for offshore fund advisory to also be a significant part of our business,” said Mr Surana.

Currently, Shinsei Bank holds 75 per cent, Rakesh Jhunjhunwala 15 per cent and Sanjay Sachdev & family promoted Freedom Financial 10 per cent in Shinsei AMC.

More Stories on : New Fund Offer | Mutual Funds

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