Page 19 - Banking Finance September 2018

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Paytm launches app for UTI Mutual Fund to finalise MD soon
mutual funds UTI Mutual Fund has formed a screening committee comprising three of its board
members to zero-in on a suitable candidate to occupy the corner office. The
Paytm Money Ltd has launched the committee, comprising DK Mehrotra (former Chairman of Life Insurance Cor-
mutual fund poration of India), Uttara Dasgupta (former Chief General Manager of State
app and it ex- Bank of India) and James S Riepe (former Vice-Chairman of the board of direc-
pects the
number of tors of T Rowe Price), has been formed following Leo Puri demitting office as
mutual fund Managing Director of India's sixth-largest mutual fund on completion of his five-
investors in India to more than year term on August 13.
double from the current 20 million to Imtaiyazur Rahman, Group President and CFO, has taken charge of the mutual
50 million by 2023. The app will en- fund as acting CEO with effect from August 14. The MF is looking for candidates
able customers to buy and sell mu- with about 30 years experience in the financial services sector, with at least 10
tual funds and manage their portfo- years in the mutual fund industry. However, the screening committee can relax
lio from a mobile phone. the criteria for deserving candidates.
Initially, the app will offer all There is a sense of urgency in appointing the MD as the fund house plans to tap
schemes and direct plans from 25 the capital market with an initial public offer, even as the four main stakehold-
mutual fund houses, including all ers are required to pare their shareholding to 10 per cent by March 2019, in
large fund houses, that cover around keeping with the market regulator's cross-holding restriction in the domestic
90% of the industry's Rs. 22 trillion mutual fund industry. UTI's four sponsor stakeholders - State Bank of India,
worth of assets under management. Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India -
"Eventually, and very soon, we will have 18.24 per cent stake each in the fund house.
have the rest of the fund houses on All four shareholders have a presence in the mutual fund business through their
board," said Pravin Jadhav, whole- own subsidiaries. T Rowe Price International Ltd has a 26 per cent stake in UTI.
time director at Paytm Money.
In the April-June 2018 quarter, UTI's average assets under management (AAUM)
Jadhav said Paytm Money will ac- accounted for 6.54 per cent of the mutual fund industry's AAUM of Rs.23,40,377
quire new customers at a pace faster crore.
than the Indian mutual funds indus-
As per the April-June 2018 quarterly AAUM, UTI Asset Management Company
try and will quickly enter smaller
towns. Around 65% of the customers (UTI AMC) is the sixth-largest AMC with an AAUM of Rs.1,53,183 crore. The
who have registered for the app so top-five mutual funds by AAUM are - ICICI Prudential AMC (Rs.3,10,166 crore),
far come from 'Beyond the Top 15' HDFC AMC (Rs.3,06,841 crore), Aditya Birla Sun Life AMC (Rs.2,49,270 crore),
(B15) towns, a mutual fund industry Reliance Nippon Life AMC (Rs.2,40,445 crore) and SBI Funds Management Pvt
term used to describe smaller towns. Ltd (Rs.2,33,114 crore).

BANKING FINANCE | SEPTEMBER | 2018 | 19