UTI AMC will launch Small Cap Fund & Focused Equity fund, soon: Imtaiyazur Rahman, CEO & Whole-time Director

Imtaiyazur Rahman, CEO & Whole-time Director, UTI AMC, talks about growth expectation in remaining FY21 and FY22, plans related to product launch and recovery from Altico Capital among others during an exclusive interview with Swati Khandelwal, Zee Business. Edited Excerpts: 

Q: The Company has completed the process of listing. Let us know the kind of growth the company is expecting in FY21 and FY22?

A: The process of the listing has been completed and I would like to inform you that within two-quarters, quarter one and quarter two, the industry has gone back to the March numbers, as the number is more than their March numbers. UTI has also grown. The industry grew by 12%, while UTI grew by 16%. In the last five years, the industry’s growth was unprecedented and they grew at a rate of 18%. It is an unprecedented period for the entire world as well as for our country. But if you have a look at the country’s data of the September month that has been released a few days back then the key indicators are very positive. That’s why I think, our economy will grow, our country will grow and the mutual fund industry will definitely grow. Going ahead, 2021 and 2022 seems quite bright to me and UTI is well-positioned to capture this growth opportunity. 

Q: Do you have any plans to launch new funds in the near term and do you have any particular fund that we can expect from you?

A: The rationalization and categorization of the products as per the advice of the SEBI, and it doesn’t leave much opportunity for us to launch any product in the mutual fund segment. But we have two products where the gap is available and they are small-cap funds and focused equity. And, we will launch a small-cap fund soon and we have a plan in the focused equity fund and it will also be launched in the near future. 

Q: Do you have any particular category funds where faster growth is visible?

A: I think the equity momentum will be maintained and last time also I have said that the dip is temporary and momentum of the equity will be maintained and it will continue to move ahead. There has been a slight slowdown in the fixed income product like credit risk fund, short-term income fund, corporate-term fund, and there is a very high probability of growth in these funds. These products are the substitute of the fixed deposit and can provide better returns to the investors in comparison to the fixed deposit. I see a lot of growth in these products and the category of the asset class. 

Q: Your company has received Rs 12.3 crore from Altico Capital, which is a good thing. Can you tell us about the total exposure and the extent to which write-down has been made of the exposure and what has been received from it and the expected part that will come back?

A: I don’t remember the outstanding amount that we have at present. But I am very confident and I and my whole team are working on it for recovery. I am very confident that our recovery will be done from there and time will decide the quantum in which it will happen because there are many processes in it. As a lender, we are working collectively. I am very optimistic that we will have a sound recovery in Altico. 

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Q: If we talk about the near term than what kind of results is expected in the second quarter and will be able to fee a muted growth or a flattish growth when compared to the last quarter?

A: The growth number, we have seen for September within the June quarter and September quarter has been a healthy one and the October trend is providing a positive indication to me. Therefore, I feel as well as believe the second-quarter number will not be a muted/ negative but will be slightly better.