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Parent prop for Peerless mutual arm

Calcutta, Feb. 24: Peerless Funds Management Company is looking to receive Rs 50 crore from parent firm Peerless General Finance in the next six months.

“We are looking to receive Rs 50 crore from the parent company in two equal parts. The first part will arrive by this week and the other part will come within six months,” managing director and chief executive officer Akshay Gupta said.

The asset management firm plans to use the fund to expand its reach and increase its customer base.

“We are exploring opportunities to expand our business in tier-II and tier-III cities more. We have set a target of increasing our customer base five times in the next two years,” said Gupta.

The firm has a network of 38 branches and 53,000 customers. It has total assets under management of over Rs 5,000 crore, which it aims to double in the next two years.

It has also lined up more products to increase its customer base.

“We are looking to introduce a tax-saving product that could either be an equity linked savings scheme or a Rajiv Gandhi Equity Savings Scheme. We are also looking to introduce more hybrid products, comprising debt, equity and gold,” said Gupta. The firm has seven products in its portfolio.

The company achieved break-even in the September-December quarter and is expecting to earn profit in the final quarter. It started its operation in February 2010.