INSUBCONTINENT EXCLUSIVE:
Mumbai: The humble paper is adding to the glitter of gold at Muthoot Finance
favourite store of value for an increasing number of Indian savers.
The business will change hands for Rs 215 crore, with the buyer
assigning the fund a value of 4 per cent of the total assets managed
Promoted by IDBI Bank in 2010, IDBI Mutual Fund is one of the profitmaking AMCs with assets of Rs 5,348 crore.
The transaction is expected
to be completed by February 2020.
IDBI MF runs 22 schemes spread across both the equity and debt segments and has close to Rs 2,400 crore of
assets in the more profitable equity segment
management is a longterm business that needs a lot of patience
Dhirendra Kumar, founder, Value Research.
Analysts point out that the asset management business is tough, and that companies need to invest
in building distribution and show robust scheme performance.
The Indian mutual fund industry has been one of the fastest growing businesses
Assets under management have increased from Rs 10.96 lakh crore in October 2014 to Rs 26.33 lakh crore in October 2019, a 2.5x rise in a
span of 5 years.
Earlier this year, Reliance Capital sold its asset management business to Nippon Life Asset Management, while Torontobased
Manulife picked up a 49 per cent stake in Mahindra Asset Management
Bank of Baroda and BNP Paribas AMC have also decided to merge their asset management arms.