On a Fast Growth Track
Mirae Asset Global Investments Co. said on July 5 that its assets under management (AUM) in India have reached 3.3 trillion won (US$2.95 billion or 200 billion rupee). The AUM of Mirae Asset's Indian operation had risen at the fastest rate out of all asset managers in the country for two consecutive years in 2016 and 2017. This year alone, its assets grew by more than 800 billion won (US$714.92 million), making the subsidiary the 16th largest among 40 global financial institutions operating in the country.
Mirae Asset Global Investments opened a subsidiary in India in November 2006, and it is currently the only standalone foreign asset manager in the country. The company directly creates fund products, establishes its operation systems and sell the products to the locals. In the aftermath of the 2008 global financial crisis, most of international asset managers either left the Indian market or turned its subsidiaries as joint venture with Indian companies. However, Mirae Asset Global Investments has maintained its local entity and continued investing in the country’s high growth potential. The company has also pursued a thorough localization strategy as it has only one Korean employee out of the total of 130.
The Indian subsidiary currently has 80 percent of its assets invested in equity funds and more than half of a total of 1 million account users make an investment on installments.
has recently started adding non-traditional assets, such as real estate and venture investment, to its portfolio to broaden its client base, besides traditional assets, like stocks and bonds. This year, the Indian subsidiary has created 100 billion won (US$89.37 million) worth of private equity funds that invest in Indian real estate loans and it is also considering investing in local venture companies in the logistics and healthcare sectors.