News: Foreign fund biggies plan to enter India

(BL 05/06/2006) Mumbai - At least four foreign fund biggies would soon enter the Indian mutual fund industry, a sign that re-affirms overseas interest in the country's stock markets though indices continue to sway.

US-based American International Group and JP Morgan, British fund house Dawnie Day and Singapore-based Temasek are learnt to have drawn out their plans to enter the Indian mutual fund industry. They are expected to get operational in the next five-six mo nths.

"A few foreign fund houses such as Temasek, JP Morgan, AIG and Dawnie Day have plans to enter the Indian market. They are working towards the same and are likely to make it in the next five or six months," the Chairman of Association of Mutual Funds in India, A P Kurian, told PTI here.

They would enter India, after getting required approvals, either by starting their own arm or in collaboration with some other companies, he added.

"We are planning to enter the mutual fund business very soon. We have applied to SEBI for approval and are awaiting it. We also plan to launch a realty fund and are in talks with potential market players of the same," the AIG Country Head, Sunil Mehta , said.

AIG, besides starting an asset management company in India, has plans to start consumer finance, mortgage guarantee and capital recovery businesses.