SBI Funds Management eyes new AIF capabilities, targets 1.4 million wealth customers by 2030

Mumbai [Maharashtra] (India), July 21 (ANI): SBI Funds Management is planning to introduce new product capabilities under its Alternative Investment Funds (AIF) business and strengthen its fund management and fundraising capabilities, said SBI Funds Management CEO Debasish Mishra.

Speaking to the media after the listing ceremony of SBI Funds Management, Mishra said AIFs are among the key business segments where the asset manager is making significant investments.

“Our Alternative Investment Funds (AIF) is one of the big areas where we are making major investments. So you will see us announcing some new product capabilities on that, and we are also getting capabilities, both managing and raising funds,” Mishra said.

He noted that Category II AIFs represent a large segment as the alternative investment fund industry continues to expand.

CS Shetty, Chairman SBI, said the company would continue to focus on its core mutual fund business while expanding its product offerings.

“”Mutual fund itself is less than 4 per cent of our customer base. So I think without losing the focus on the core, we would like to make the products available,” Setty said.

He further noted that the company would continue to focus on manufacturing products through its own subsidiaries, allowing it greater control over product quality and suitability for customers.

“We will stick to our own subsidiaries manufacturing products because we have much more control in terms of the quality of the products and also what we design for our customers’ suitability,” he said.

On royalty and commission payouts, Setty said the company’s approach would remain unchanged following its listing. He stressed, “Whether it’s listed or unlisted, our approach always has been benchmarking to the industry and probably we set the benchmarks in terms of what are the best practices in terms of royalty payouts as well as on the commissions. Nothing is going to change.”

Setty further said SBI Funds Management aims to reach around 1.4 million wealth-qualifying customers by 2030.

Stating the AMC follows “open architecture” in terms of wealth management offerings, Shetty noted, “We have chosen the best which is suitable for high-net-worth individuals and we’ll continue to do that.” (ANI)

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