India’s Unifi Capital has received regulatory approval to launch mutual fund operations, with founder Sarath Reddy describing the move as “very logical” after more than two decades as a portfolio management services company, with US$3.2 billion of assets under management.
Portfolio management services firms generally have higher expenses and fees than mutual fund companies as they offer personalised services to clients, who are usually high-net-worth individuals and accredited investors.
“After 23 years as a portfolio manager, this is a logical milestone in our journey to establish a mutual fund that complements our time-tested services,” Reddy says in a statement on November 16 announcing the green light from the Securities and Exchange Board of India.
The new business will be run under the name of Unifi Mutual Fund.
According to Reddy, a “strong and independent” investment team is “fully prepared to bring Unifi's core absolute value investing approach to investors seeking niche and rewarding opportunities”.