Comments
Andromeda Sales and Distribution, the country’s largest loan distribution firm, is foraying into mutual fund distribution through a separate wholly owned subsidiary, Andromeda Wealth, a top official said.
“The strategic intent behind our foray into mutual fund distribution is to harness the network as well as huge number of customers we have acquired in our loan distribution business over last three decades”, Raoul Kapoor, Co-CEO , Andromeda Sales told businessline here.
He also said that regulatory approvals have been received for the foray into MF distribution. Andromeda Wealth will get operational in 30 days along with a dedicated app for distribution of mutual funds, he said.
To begin with, Andromeda Wealth will aim to distribute mutual fund assets worth ₹5,000-6,000 crore in first year, Kapoor added. “We will, in next one month, start with distribution of mutual fund products of 20-22 fund houses. Already, we have signed up with 5-6 fund houses,” Kapoor said.
This target of ₹5,000-6,000 crore is achievable given that retail investors in India are on an average now investing about ₹20,000 crore into mutual funds through Systematic Investment Plans (SIPs).
Loan disbursals
Meanwhile, Andromeda, whose diverse loan portfolio includes home loans, loans against property, personal loans, business loans and other loan products, recorded a 23 per cent growth in loans disbursed during 2023-24 to ₹75, 397 crore, driven primarily by the robust performance of the home loan segment.
The home loan business surged to ₹33,918 crore in 2023-24 — up over 22 per cent from ₹27,798 crore in FY23. “Despite a 50 basis points increase in interest rates, the demand for home loans continues to grow, buoyed by a positive economic outlook. Digitalisation, faster approvals and increased availability and flexibility have fuelled higher demand for personal loans,” Kapoor said.
On Friday, Andromeda also launched OneAndro app to help streamline financial processes and enhance the customer experience.
Comments
COMMENT NOW
