JM Financial Mutual Fund Inaugurates Its Branch in Chennai
Chennai, 9 Feb. 2023
JM Financial Mutual Fund announced the relocation of their branch in Chennai. The relocation of the branch is aligned with the strategy to extend its reach to offer various services across the country.
Commenting on the occasion, Mr. Amitabh Mohanty, CEO, JM Financial Asset Management Ltd. said, Chennai is a very important market and strategically is a significant gateway to other big cities and towns like Coimbatore, Madurai, Salem, other cities across Tamil Nadu and Kerala. The city has a huge economic base with huge potential for investment across both, Equity and Debt Mutual Fund products. This is supported by the large aspirational class who wants to invest for growth and wealth creation. Across all segments of population in this important city, mutual funds are an important investment avenue. Hence it is important to be present and expand our presence in this region. Relocation to a bigger branch showcases our commitment of a much larger and long-term relationship with Chennai. This newly inaugurated branch will make our products and services easily available to our retail investors and partners”.
Chennais Mutual Fund Market has shown approx. growth in the range of 13% to 14% for last 5 to 10 years. During this period, bank deposit growth rates have slowed slightly. As a result, Mutual Fund investments to bank deposit ratio has moved up to 28% (Measurement of MF Penetration) in 2022 for Chennai up from 21% in 2012.
From a distributors perspective, MFDs & NDs together contribute 1/3rd of the total mutual fund AUM in Chennai. The AUM constitutes higher level of equity and hybrid schemes which contribute approximately 50% of the citys AUM. The Fixed Income schemes also have sizeable AUM with approximately 33% of the same.
The AUM in Chennai has increased from 75,680 crores in June 2018 to 1,12,083 crores in December 2022 and the city now ranks 7th amongst all cities in the country.