SBI Mutual Fund managing director P. G. R. Prasad in Calcutta on Wednesday. Picture by Kishor Roy Chowdhury

Calcutta, May 4: SBI Mutual Fund (SBIMF) plans to launch four schemes, including a commodity fund, a capital guaranteed scheme, an MIP floater fund, a flexicap fund. The fund house is also discussing the possibilities of setting up an offshore diversified equity fund with Societe General Asset Management (SGAM) of France, which has picked up a 37 per cent stake in SBI Fund Management.

'The funds will hit the market before September this year,' said P. G. R. Prasad, managing director, SBI Mutual Fund. He added, 'The initial offer documents are in the process of finalisation.'

The fund house targets Rs 10,000-crore assets under management (AUM) by the end of this fiscal, according to Prasad. 'However, in the present scenario, it is difficult to predict the direction of the market,' he added.

The assets under management of SBIMF has grown by 26 per cent to Rs 6,595 crore compared with 8 per cent growth achieved by the industry. 'We plan to be amongst the top five players within the next few years and strengthen our distribution network,' said Prasad.

'Apart from State Bank of India distributing the products, we have also tied up with other banks with strong regional presence such as Andhra Bank and Federal Bank for south India. We are also in the process of tying up with Allahabad Bank for the eastern region,' he added.

SBI Mutual Fund is also exploring the franchisee channel for setting up distribution operations in the international market and has already set up shops in Dubai and Kuwait. 'By the middle of this month, we will finalise the marketing tie-ups in Muscat and Bahrain. Then we will take a look at Hong Kong and Singapore markets,' mentioned Prasad.

SBI Mutual Fund is also toying with the idea of inorganic growth 'both the bank sponsored and private mutual funds. However, Prasad explained that such a union would be based on compatibility, product match and factors.