Edelweiss receives SEBI Approval to start Mutual Fund operations

06 May 2008 | 10:37 Edelweiss receives SEBI Approval to start Mutual Fund operations

Edelweiss Capital, one of Indias largest Integrated Investment Banks announced that it has received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start its mutual fund business. Registration has been granted to Edelweiss Mutual Fund and approval has been granted for Edelweiss Asset Management Ltd. to act as investment manager to Edelweiss Mutual Fund.

Jimmy A. Patel, Chief Executive Officer, Edelweiss Asset Management Limited (EAML) said, The Indian mutual fund industry has been growing at a rapid pace of 47% year-on-year over the last five years. However, current penetration levels are just 3-4%, clearly indicating the vast untapped potential. With an increasing percentage of population moving towards a higher savings and investment mindset, opportunities exist to take advantage of this shift. We believe that the time is right for us to enter the market by offering innovative customer-specific solutions across the range of debt, arbitrage and equity products. Going ahead, we feel that the key drivers of the business will be customer reach and servicing, performance of funds and pedigree of the sponsor.

Rashesh Shah, Chairman, Edelweiss Group said, The plan to launch a mutual fund is in keeping with our long term strategy of building a diversified financial services company offering products and services across asset classes. Our vision is to become an innovative and universally renowned asset manager providing excellent investment solutions, exemplary services and setting the highest ethical standards.

Edelweiss Asset Management Ltd. plans to launch 8-9 products over the next 12 months. The product portfolio will include broad based equity funds, structured products, arbitrage funds, ETFs, and other innovative fixed income and equity funds in line with requirements of the market.