Mahindra Asset Management Company has received markets regulator SEBI’s approval for setting up of theirmutual fund business. Mahindra AMC, a wholly-owned subsidiary of Mahindra & Mahindra Financial Services (MMFS), got the regulator’s nod on February 4. However, the company did not disclose by when it will start offering mutual fund products. At present, there are over 40 mutual fund houses operating in the country.
HDFC MF, ICICI Prudential and Reliance MF are among the top mutual fund companies in India. MMFS is a part of the Anand Mahindra-led Mahindra group. The financial services arm has more than 1,000 branches across the country with over 16,000 employees.
Did You Know???
- Mutual funds belong to a group of financial intermediaries known as investment companies, which are in the business of collecting funds from investors and pooling them for the purpose of building a portfolio of securities according to stated objectives.
- Mutual funds are generally organized as corporations or trusts, and, as such, they have a board of directors or trustees elected by the shareholders. Almost all aspects of their operations are externally managed.
- Mutual funds are known as open-end investment companies because they are required to issue shares and redeem (buy back) outstanding shares upon demand.
- Mutual funds provide investors with a way to diversify their investment under professional management, which most investors may not be able to obtain on their own.
