K Sarath Reddy, founder and Chief Investment Officer of Unifi Capital.
| Photo Credit: M. Vedhan
Chennai-based Unifi Asset Management Private Limited which is the new entrant in the mutual fund space, is planning to have only three funds under its fold for the next five years.
“We want to do fewer things and do them well, which has a higher probability of success. Our plan is we will have only three funds for the next five years. In all likelihood, we will probably be the fund house with the least number of funds in the whole country and we are very happy with that,” K. Sarath Reddy, chairman, Unifi Asset Management Private Limited, said in a media interaction.
Unifi Asset Management has already launched and closed its first fund Unifi Dynamic Asset Allocation Fund, which would focus on fixed income.
“We are planning to launch a flexi cap fund, which will be a 100% equity fund in May. In June, we are planning to launch a hybrid fund which will be a combination of equity and fixed income,” Mr. Reddy said.
Asked about the fund house being launched at a time when markets are volatile, he said it is a right time to launch as valuations are depressed.
“There is a category between High networth individuals and retail and I term the layer as mass affluent. These are categories of people you earn and pay taxes of a meaningful value, but not yet a point where they can invest a few lakhs in single portfolio management schemes. That would be our target segment,” Mr. Reddy said.
Citing a report from Securities and Exchange Board of India (SEBI), he said 73% of mutual fund units were redeemed within two years of investment. Only investments in 3% of the units continued for more than five years.
“Our differentiation would be service. It would be great if we can take that 3% (number of units which continued for more than 5 years) to at least 25%,” Mr. Reddy said.
M. Damodaran, former SEBI chairman and Kishore Mahbubani, former president, United Nations Security Council and Founding Dean, Lee Kuan Yew School of Public Policy also addressed at the Unifi mutual fund launch event on Saturday (March 15, 2025.)
Published – March 17, 2025 03:31 pm IST
