Angel One gets SEBI Licence to its Start Mutual Fund Business
Angel One Asset Management Company Ltd., a subsidiary of Angel One Limited, has received approval from SEBI to operate as the asset management company for the affairs of Angel One Mutual Fund. It made the announcement on November 26. The company entered a new space in the asset management arena with a focus on offering passive investment solutions.
According to the company, the new mutual fund will focus on passive investment products called Index Funds and Exchange-Traded Funds (ETFs). These will provide low-cost, transparent routes to wealth-building for clients. The launch is an expansion of the growing trend toward simplicity and cost-efficiency among investors.
The company elaborated on its goals of leveraging robust technological infrastructure and a deep understanding of investor needs to transform the passive investment landscape in India. Aiming to make financial products more accessible, affordable, and transparent for a broader base of retail and institutional investors, the mutual fund would focus on ETFs and Index Funds.
The company plans to establish Angel One Mutual Fund as a one-stop destination for designing a wide range of ETFs and Index Fund products tailored to the variety of investment preferences and risk profiles of clients. The asset management company will purchase the digital infrastructure and large distribution network of its parent company and other partners to make the offerings available perfectly.
Industry experts believe the emphasis on passive investment products is going to give a new generation of investors an entry point into the market, enabling them to participate more effectively in India’s economic growth. A user-friendly, easily understandable wealth creation product from the mutual fund is likely to attract a significant number of retail investors across the country.
The mutual fund license is seen as a strategic step forward, coinciding with the rapid growth of passive investing in India. ETFs and index funds are increasingly becoming the most preferred investment options for investors seeking diversified and cost-effective portfolios.
The stock price of Angel One Limited went up 4% to Rs. 2,911.2 per share by 3:25 pm on November 26. It has a market capitalisation of Rs. 26,270 crore. Analysts say market sentiment has been boosted up with SEBI approval and that the stock price is firming up. Growth prospects in the passive space are also supportive of the price momentum.
This will more than likely be of great use in further growing the Group’s operations in the financial sector and in achieving the financial objectives of clients as a whole.
