Abakkus Asset Manager Forays Into Mutual Funds With Flexi-Cap, Promises Innovative Products
The primary motivation behind this move stems from recognising the structural disadvantage faced by retail investors who attempt to manage direct equity investments.
Despite a dip in the inflows into actively managed equity during the month of September, the inflows into flexi cap funds were stable at Rs 7,029.26 crore. Sunil Singhania, Founder of Abakkus Asset Manager, has chosen to venture into this category as they announce the firm's foray into mutual fund. This move is broadly to democratise institutional-grade equity research and cater to a massive segment of small-scale investors. The company's initial product focus will be a flexi-cap fund, one of the most popular categories in the equity market, and then streamline into more innovative products.
The primary motivation behind this move stems from recognising the structural disadvantage faced by retail investors who attempt to manage direct equity investments. Singhania pointed out that most individuals lack the crucial resources available compared to large funds.
He stated, "They do not have a 20 member research team like we do or some of the larger funds," which puts them at a constant disadvantage. He concluded that, "So small-scale investors might always be at a disadvantage compared to the larger players."
Household Names To Innovative Products
Singhania acknowledged the investor frustration, noting, "There are lot of investors who basically feel lead down as they do not have that kind of money to invest with us. There is obviously a huge market to cater to." The launch of MFs is a direct response to this high demand for their investment style at a lower investment threshold.
On the product strategy, Abakkus will commence with a popular and well-understood scheme. "The largest funds within equities is a flexi cap and we will start with that. We will take on innovation as we go a few years forward," he confirmed, indicating a long-term plan to introduce specialized and future-ready products.
Singhania believes this is a vital time to enter the segment, recalling the industry’s evolution: "When I joined we had to tell people what MFs are. There will be more exotic and forward-looking funds coming in. Looking foward, we wanted to foray into it."
The founder is clear about the challenge ahead. The mutual fund space is highly competitive, and distribution relies heavily on network size. He admitted, "It is a tough task because you are going to be pitched against the largest of banks with many branches in terms of funds."
Despite this, the move by Abakkus confirms a strong commitment to empowering the broader investment community with professional expertise, starting with the accessible and flexible route of a flexi-cap mutual fund.
