**Abakkus Asset Manager Plans to Enter Mutual Fund Market**
Abakkus Asset Manager, founded by Sunil Singhania, the former chief investment officer of Reliance Mutual Fund, is poised to expand its operations by launching a mutual fund business. Currently, Abakkus is recognized as India’s eighth-largest provider of Portfolio Management Services (PMS), managing assets worth ₹18,010 crore under PMS, according to the Association of Portfolio Management Services (APMI). The firm’s total assets under management (AUM) stand at ₹32,542 crore, which includes PMS, Alternative Investment Funds (AIF), and private equity.
The move to establish a mutual fund division comes as the firm seeks to tap into the growing retail investor market, which has become increasingly attractive due to the vast pool of potential investors. Unlike the PMS business, which caters primarily to high-net-worth individuals and faces challenges in scaling due to high investment thresholds, mutual funds offer a more accessible investment option for the general public. This shift aligns with the trend of portfolio managers seeking licenses from the Securities and Exchange Board of India (Sebi) to launch mutual funds.
While discussions about the mutual fund plans are still in the early stages, insiders suggest that transitioning from a focus on high-net-worth individuals to a broader retail investor base is a logical step for Abakkus. As of April 30, retail investors accounted for 79% of the 235 million investor accounts in the mutual fund industry, representing 57% of the average mutual fund AUM, according to data from the Association of Mutual Funds in India (AMFI).
Equity mutual fund schemes, which must invest at least 65% of their assets in stocks as per Sebi regulations, along with hybrid schemes that combine various asset classes, are particularly appealing to retail investors. Solution-oriented schemes designed to help investors achieve specific financial goals, such as retirement planning, are also gaining traction.
As Abakkus Asset Manager prepares to enter the mutual fund space, the firm currently offers three PMS strategies, five AIFs, and one private equity fund, indicating a robust foundation for its anticipated expansion.
**FAQ**
*What is Abakkus Asset Manager’s current focus?*
Abakkus Asset Manager is currently focused on expanding its services by launching a mutual fund business, aiming to attract retail investors while continuing to manage its existing PMS and AIF offerings.