As the list of mutual fund players in the country gets longer, every fund house is trying to make its mark.

The 34th fund house, Shinsei Bank, is set to enter the Indian asset management waters. The opportunity is obviously huge, for going by estimates of Barclays Wealth Advisors, the market will grow at 15% per annum.

But, does the mutual fund glass contain beer or champagne.

“You think it is champagne, but it is just beer in a champagne glass,” says Sanjay Sachdev, country manager — fund management for South-East Asia at Shinsei Bank. The bank has invested in Lemon Tree along with UTI, in which Shinsei Bank has a $650 million offshore fund.

But, Sachdev, bound by non-disclosure alliances, declined to throw light on the area that the Japanese Bank has found interesting. He shares insights with Joel Rebello and Khyati Dharamsi on what the international players of repute that entered India lack, and how Shinsei Bank plans to spin the picture.

What has taken Shinsei so long to enter the MF business? Is there any pressure from Japan, your home country, to initiate the business?

No. We are set to launch.

We are trying to put processes in place and get better service for investors. We would have a much better infrastructure than some others who have entered the business. The entry could be even in September. Time to market is not as important as value to market. Of the few other Japanese banks that had announced plans to launch Indian operations, we are the first to go ahead.We are investors in India. We have deals coming up for evaluation everyday in India. We are investing not in all, but one out of every 20 transactions that we receive.

How would Shinsei Bank’s services be different from those of other mutual fund houses in India?

We will bring in new asset classes, better service standards. The funds that already exist in India have only gone for the low-hanging fruits. We wish to expand the market. Diversification itself is not the reason to be in the (mutual funds) business.

Would the service for investors be provided out of Shinsei’s own offices or via distributors?

There are ample financial advisors available. We would facilitate them and set new service standards. We would provide a service platform and help them be more transparent.

What would be the newer asset classes that you are eyeing?

We have a strong and global expertise in the real estate sector. There are a lot of innovative products in real estate investments, products which could solve the old age crisis and many others.

Has hiring people been a problem considering several funds are entering the market?

Not at all. We have some of the best teams in place. We are not hiring only those who are from the asset management background.When fresh talent comes in, it brings with it fresh ideas.

What are your plans beyond the asset management business? Are you looking at a banking licence in India?

We are currently taking it one step at a time and focussing on only the mutual fund business. We are not applying for a banking license. Having said that, we are prepared for the long haul and we are open to opportunities in the future. Right now we have investor operations in India and there are a lot of things happening in that space.

Are you looking for opportunities to help Indian companies raise money for Japan?

Yes, we will be looking for an opportunity, definitely. But, not very soon, because we will wait for our mutual fund business to kick off.

Source : DNA