MF Simplified

MUMBAI: Union KBC Asset Management Company plans to scale up the number of its Systematic Investment Plans (SIPs) from the current 30,000 to over 1,10,000 by the current fiscal-end and the MF player is looking at smaller towns across India to achieve the target.

Moreover, the company plans to expand its distribution network further by empanelling 1,000 new mutual fund (MF) distributors in the current financial year.

"We want our 'live' (active) SIPs to cross 1,10,000 by the fiscal-end from 30,000 at present and we are going to smaller towns and enhancing our distribution network to achieve the target," Union KBC AMC Chief Executive G Pradeepkumar told PTI today.

"The smaller towns or B-15 (beyond top 15 cities) currently contribute 22 per cent of our total retail assets under management, which currently stands at Rs 3,000 crore," he added.

Talking about his company's plans on expanding reach, he said that "we want to expand our distribution network. In first three years since inception, our focus was to the parent company Union Bank of India on retail side. Now we have completed four years and hence we are trying to expand by adding more distributors."

"We plan to expand our distribution network further by empanelling 1,000 new MF distributors in the current fiscal."

At present, the company has an equity AUM of Rs 436 crore with three open-ended and one close-ended product. These include a diversified equity fund, tax saver scheme and small and mid-cap fund plan.

Asked about new product launches, Pradeepkumar said, "We have already applied for a focused large-cap fund, an open-ended equity fund. We are also planning to launch a capital protection oriented fund and one more series of trigger fund."

Trigger fund series is a close-ended fund, the first series of which was launched in October, 2013.

Talking about Trigger fund series, he said, "We had mopped up Rs 34 crore from Series 1 of our Trigger Fund which had given a net return under its direct plan option of around 30 per cent within nine months of its launch. Buoyed by the success, we launched Series 2 of Trigger fund in March this year and were able to mop up around Rs 125 crore."

Commenting on debt funds of his company, he said, "We have six capital protection-oriented funds at present, a part of which is also invested in equity options."

"In pure fixed income category, we have liquid, dynamic bond and ultra-short-term funds and our AUM in debt category currently stands at over Rs 1,900 crore."