Jefferies is preparing to make its entry into India’s rapidly expanding $900 billion asset management industry, according to a Bloomberg report citing people familiar with the matter. The New York-based investment bank joins a growing list of global financial giants seeking to capitalize on opportunities in one of the world’s fastest-growing major economies.
As part of its strategy, Jefferies has brought on board Milind Barve, the former head of HDFC Asset Management Co., as an adviser to help shape its market strategy and guide regulatory approvals, Bloomberg reported. The individuals providing this information requested anonymity as the details are private.
India’s mutual fund industry has experienced remarkable growth since the pandemic as households have increasingly shifted investments away from traditional assets such as gold and real estate toward financial instruments. Over the past five years, total mutual fund assets in India have more than doubled, with inflows through recurring monthly equity investment plans averaging around $3 billion since April, according to the report.
However, Jefferies will face stiff competition from established domestic fund houses supported by major banks such as HDFC Bank Ltd., ICICI Bank Ltd., and the State Bank of India, whose vast distribution networks extend across the country. The firm will also compete with global players like BlackRock Inc., which recently re-entered the Indian market after a seven-year hiatus. BlackRock, the world’s largest money manager, has launched actively managed funds in partnership with billionaire Mukesh Ambani’s Jio Financial Services Ltd.
In addition, fintech companies like Groww and Zerodha are emerging as formidable rivals, challenging the dominance of traditional asset management firms through innovative digital platforms.
India’s stock market value has more than doubled to $5.1 trillion in the past five years, reinforcing the country’s growing significance as a global investment hub.
— Reported by Bloomberg
