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UTI Mutual Fund CEO Sees Slower SIP Growth, Defends IPOs
Vetri Subramaniam leads UTI Mutual Fund.
He says new companies selling shares to the public should not automatically hurt existing shares traded in the market.
He believes both new share sales and regular share trading are important.
He also says mutual funds can help new businesses grow by investing in their IPOs.
However, he expects the fast growth of SIP investments to slow during the next one or two years.
SIPs let people invest regularly in mutual funds.
UTI Mutual Fund wants to reach more people through education and technology partnerships.
It also plans to use its distribution network and digital presence more effectively.
Vetri Subramaniam said large IPOs are unlikely to pressure secondary-market liquidity.
He argued that active primary and secondary markets are both necessary for capital-market growth.
Subramaniam said UTI Mutual Fund evaluates IPOs on their individual merits rather than following a generic rule.
He expects SIP-book growth to moderate over the next one to two years after rapid expansion.
UTI Mutual Fund plans to expand through investor education, fintech partnerships, distribution and digital channels.
- Who
- Vetri Subramaniam, managing director and chief executive officer of UTI Mutual Fund.
- What
- He discussed IPOs, secondary-market liquidity, SIP growth and UTI Mutual Fund’s expansion strategy.
- Where
- The interview concerns capital markets and UTI Mutual Fund’s operations; no specific location is stated.
- When
- The interview addresses the next one to two years and trends from the past four to five years.
- Why
- Subramaniam said primary-market activity supports business growth and that UTI Mutual Fund wants to increase its share of SIP assets and overall flows.
Primary-Market Concerns
UTI Mutual Fund’s View
Impact of IPOs on secondary markets
Primary-Market Concerns
The perception is that a surge in large IPOs could divert funds and put pressure on secondary-market liquidity.
UTI Mutual Fund’s View
Subramaniam said primary-market inflows should not be viewed as harmful to the secondary market, arguing that both markets serve important purposes.
Mutual-fund participation in IPOs
Primary-Market Concerns
High mutual-fund participation in IPOs may raise concerns about whether funds are shifting capital away from existing listed companies.
UTI Mutual Fund’s View
Subramaniam described the relationship as symbiotic and said UTI Mutual Fund assesses each IPO on its merits.
Key facts
- Interviewee
- Vetri Subramaniam, MD and CEO of UTI Mutual Fund
- IPO view
- Primary-market inflows do not necessarily put pressure on the secondary market.
- IPO investment approach
- UTI Mutual Fund invests in IPOs based on their individual merits.
- Recent SIP trend
- The mutual fund industry’s SIP book grew strongly over the past four to five years.
- SIP outlook
- The same pace of SIP-book growth may not continue over the next one to two years.
- Growth initiatives
- Investor education, fintech partnerships, distribution and digital channels.
Sources
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