HDFC, Standard Life launch MF

8220;We think India has a large savings potential and the growth in its equity markets would be huge. We view India as one of our top 10 investment destinations in the coming years and are determined to being involved in this growth,8221; Bell said.

The new company, HDFC Asset Management Company Ltd, would have 26 per cent equity participation by Standard Life on an equity capital of Rs 20 crore.

According to Parekh, of the 200 billion market capitalisation of Bombay Stock Exchange, only 12 per cent has been invested by the mutual funds. We see a huge potential in increasing this to developed markets levels which is as high as 60 per cent.

The distribution capabilities of HDFC, its banking arm, HDFC Bank and its nationwide agents would be utilised to sell the mutual fund schemes to the retail investors, Parekh said.

On the insurance venture with Standard Life, Parekh said both companies would make an application to the Insurance Regulatory and Development Authority IRDA as and when the policies are in place.

The mutual fund entry marks yet another transformation of the HDFC group from a single product financial services provider to a well-diversified multi-product group, offering a wide range of services including its traditional business of housing finance, commercial banking, consumer finance, mutual funds and insurance in future.

In the first three months of the current fiscal, Parekh said HDFC grew by 35 per cent in its individual loans portfolio though corporate loans for employee housing has taken a beating. 8220;We expect to grow by over 50 per cent in the current fiscal,8221; Parekh said.

HDFC8217;s foray into fund management is intended to tap the potential of the mutual funds industry excluding UTI, which has grown by 40 per cent in the last two years.