SMC with Sanlam to start asset management business soon

NEW DELHI: Domestic brokerage firm SMC Global in association with South Africa-based Sanlam Investments is set to enter the asset management segment in the next few weeks.

"We are expecting licence from regulator soon for commencing mutual fund business with out partner SMC," Sanlam Investments Management Managing Director Armien Tyer told reporters.

The recruitment of top level executives has already started, he said, adding the fund managers are also being appointed.

The proposed 50:50 joint venture will get Rs 30 crore investment from the South African firm.

SMC has about 1,700 outlets across India which will provide distribution network while Sanlam will bring asset management product knowledge, global reach and governance processes, he said.

Asked whether this was the right time to enter India, Tyer said, "we believe in long-term growth story for India and that way, this is the opportune time to enter the market. We believe, Indian market is fundamentally strong and the need for financial services would only grow in the days ahead."

Mutual fund space has become highly competitive with already 34 players operating in the market.