Fund Operation in India
Mirae Asset Global Investments Co. announced on October 19 that its Indian operation’s asset under management reached 1.11 trillion won (60.9 billion rupees or US$913.77 million).
The Korean company set up its Indian operation in November 2006. Since then, the branch has established systems that directly design and manage fund products and sold the products to local customers. In addition, the Indian operation is the only asset management company in India that independently managed by a foreign fund.
Mirae Asset Global Investments has made continuous investments in the country with expectations for an increase in consumption of young Indian people on the rise of middle-class and a further growth in the government’s infrastructure spending. An official from the company said, “82 out of 83 employees are Indian. We are seeking to expand its presence in the market through the localization and position it as a differentiated asset management firm by combining Mirae Asset’s global research capabilities.”
The Indian fund market is estimated at 266 trillion won (US$236.87 billion), about 55 percent of the Korean one, but has been rapidly growing by more than 25 percent every year since 2014. Although its base interest rate stands at 6.25 percent and bond funds account for 65 percent, the base interest rate has recently reached a record low in six years and an increasing number of investors are paying attention to equity funds due to the continuous fall in interest rates.
Three-year and five-year return rates of its Mirae Asset Emerging Bluechip Fund recorded 203 percent and 268 percent, respectively, as of the end of September. Three-year and five-year return rates of Mirae Asset India Opportunities Fund reached 105 percent and 158 percent, respectively. The Indian operation attracted 260 billion won (US$231.52 million) and 150 billion won (US$133.57 million) from local investors through the two fund products this year, and received the highest grade of 5 from fund appraisers, including Morningstar Inc.
Swarup Mohanty, CEO of Mirae Asset Global Investments (India), said, “Mirae Asset has become India’s first asset management company that sets up funds for the local market and has been selling its products to local investors since it first branched out to the country 10 years ago. We will make every effort to provide steady earnings rates to investors at home and abroad who invested in Indian funds.”