- RCAM is an unlisted public limited company and is a subsidiary of Reliance Capital Limited (RCL).
- It is the asset manager of Reliance Mutual Fund (RMF).
- RCL holds 56.23%, Nippon holds 35%, while others hold 8.77% of the total issued and paid-up equity share capital of RCAM.
- RCL has business interests in asset management, life insurance, and other activities in the financial services sector.
Goldman Sachs acquires Benchmark MF
16 Mar 2011
- Goldman Sachs Asset Management Company acquired Benchmark Mutual Fund, an Indian fund house for ₹130.5 crore. Benchmark managed assets worth around ₹ 3000 crore.
- All Benchmark employees were retained by the new management.
- Benchmark was the country's only fund house with a sole focus on exchange-traded funds (ETF)
- ETF is an investment fund traded on stock exchanges, just like stocks.
Which companies have left Indian mutual fund market?
- Standard Chartered had sold its mutual fund business in India to Infrastructure Development Finance Company (IDFC) in 2008.
- American multinational financial company Fidelity had sold its mutual fund business to L&T Finance in 2012.
- HDFC MF had acquired Morgan Stanley's business in 2014.
- There were 40 fund houses left in India with AUM of ₹ 133 lakh crore, with HDFC leading the race.
Reliance, HDFC frontrunners to buy Goldman Sachs MF
8 Oct 2015
- Reliance Mutual Fund and HDFC Mutual Fund were the frontrunners in the race to acquire Goldman Sachs' fund management business.
- Reliance was likely to bid aggressively as it wanted to bridge the gap between number 2 company ICICI mutual fund and them.
- HDFC was looking to retain its numero-uno position in the market.
- The deal would also help the acquirer in the ETF business.
The big players of Mutual Fund business
In terms of mutual fund AUM, HDFC MF is the largest (₹1.71 lakh crore), followed by ICICI Prudential (₹1.65 lakh crore) at second and Reliance MF (₹1.53 lakh crore) at third place.
RCAM to acquire Goldman's MF business
21 Oct 2015
- Reliance Capital Asset Management (RCAM) announced the acquisition of Goldman Sachs' mutual fund business in India for ₹243 crore.
- RCAM would acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management India with total Assets Under Management of ₹7,132 crore.
- The transaction would make Reliance the exclusive fund manager for the government's Central Public Sector Enterprises (CPSE) Exchange Traded Fund.