PPFAS Mutual Fund, promoted by Parag Parikh Financial Advisory Services (PPFAS), is targeting Rs 800-900 crore as assets under management (AUM) for this financial year 2016-17, against Rs 650.92 crore in the last financial year.
Having 7,500 clients across pan-India, PPFAS Mutual Fund is focusing more on strengthening its fund distribution in Bengaluru through Independent Financial Advisers (IFAs), distributors' associations and other channels. It expects to increase customer base in the city through Systematic Investment Plan (SIP) route in the next 1 year.
Speaking to Deccan Herald, Neil Parikh, chairman and CEO, PPFAS Mutual Fund said, "Currently, the Bengaluru market contributes 12% of total SIP folios which stands at 3,274 as on March 31, 2016. Bengaluru, the second largest market for PPFAS Mutual Fund, contributes 9% of total AUM of Rs 650.92 crore. Bengaluru is a city full of great potential for investment in the mutual fund and will continue partnering with like-minded distributors."
At present, the firm with the single scheme is focusing the southern and western region of the country. Over time, Parikh said, "We will expand our reach to include more places. In the near future, equity will remain the focus for us and I do not see us launching new schemes. We will concentrate on the fund performance and get the right people to invest and partner with us. I know over the long term, our fund will grow by leaps and bounds."
"We have given returns in the range of 18-20% to investors in the past couple of years. However, in the current economic scenario where interest rates and inflations are coming down, we expect absolute returns also be a little lower. So, for instance, if current inflation is at 6-7%, then marking a return of 13-15% is a good number," he added.
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