HYDERABAD: Kotak Mutual Fund (KMF) is targeting 20-25 per cent growth in assets under management in FY18, which is double the industry growth rate. KMF, which has been steadily featuring among the top 10 mutual funds, is betting on systematic investment plans (SIPs) to achieve this growth rate. As the investors are increasingly preferring financial assets to physical assets, KMF is positive about achieving its growth targets.
“A lot of disruption happened in the way people are investing. They are moving from investments in real estate and gold to mutual funds and SIPs. Demonetisation has further triggered this trend. This is auguring well for the industry, which is growing at 12-15 per cent. Mutual funds are in a sweet spot now compared to other investments sources. While the total AUMs among all MFs in the sector is about Rs 20 lakh crore, KMF has assets under management to the tune of Rs 1.10 lakh crore,” said Manish Mehta, head (national sales and distribution), Kotak Mahindra Asset Management Co Ltd.
Currently, KMF has around 5 lakh SIP accounts through which investors regularly invest in its MF schemes such as Kotak Select Focus, Kotak 50, Kotak Emerging Equity, and Kotak Income Opportunity that are popular among KMF investors. AUMs under KMF was about Rs 92,216 crore in March 2017, and it has grown to Rs 1.1 lakh crore as of now.
“One encouraging trend we are witnessing is the increase in the number of first generation investors. Also, instead of investing in stocks directly, they are opting for SIPs and MFs. I would always suggest new retail investors select SIPs and MFs as they are professionally managed, diversify risk and offers liquidity,” stressed Mehta.
He pointed out that as the interest rates in banks and even government schemes keep falling, investments in MFs will be the best alternative.