Angel One AMC Gets SEBI Nod To Start Mutual Fund Business

SUMMARY

The company plans to offer transparent and low cost solutions, aimed at simplifying wealth creation

“With this milestone, Angel One marks its entry into the asset management space, focusing exclusively on passive investment solutions” the stockbroking firm said in a filing today

Earlier this year, the company announced that it will launch a passive mutual fund and is in the final leg of setting up an AMC

Listed broking firm Angel One’s wholly owned subsidiary Angel One Asset Management Company Ltd has received approval from the Securities and Exchange Board of India (SEBI) to act as the asset management company for Angel One Mutual Fund.

This move marks Angel One’s foray into the asset management space.

Earlier this year, the company announced that it will launch a passive mutual fund and is in the final leg of setting up an AMC.

“With this milestone, Angel One marks its entry into the asset management space, focusing exclusively on passive investment solutions” the company said in a release.

Angel One said it plans to offer transparent and low-cost solutions, aimed at simplifying wealth creation.

“This licence enables us to augment our offerings and better serve our clients…Our focus on passive investing through ETF and index fund products reflects our commitment to making financial products more accessible, affordable and transparent for all,” said Dinesh Thakkar, chairman and managing director of Angel One.

With this licence, Angel One AMC is looking to leverage the existing digital infrastructure and distribution network of Angel One and its other partners to provide easy access to the investment products.

“Through our ETFs and index funds, we aim to offer user-friendly, easy to understand wealth creating products to a growing base of retail investors across the country,” said Hemen Bhatia, executive director and CEO of Angel One Asset Management Company Limited.

With this, Angel One, which competes with the likes of Zerodha and Groww, in the broking segment will also take on them in the asset management space.

The development comes at a time when rising digital connectivity, financial literacy, and smartphone penetration have resulted in the Indian investment and asset management space growing at a rapid pace, especially after the Covid-19 pandemic.

Meanwhile, Angel One chief growth officer Prabhakar Tiwari told Inc42 earlier this year that the company is also conducting beta testing for lending business and exploring entry into the insurance distribution space.