Lakshya AMC Gets SEBI Nod, ETF Pioneers Behind Benchmark Return

A new fund house, Lakshya Asset Management Company, has received approval from the Securities and Exchange Board of India to commence mutual fund operations, expanding India’s asset management industry.

Lakshya AMC will be sponsored by Wealth First Portfolio Managers, a listed wealth management firm headquartered in Ahmedabad.

The new fund house is led by Sanjiv Shah, Rajan Mehta and Sanjay Gaitonde, the founding team behind Benchmark Asset Management Company, which introduced exchange-traded funds in India. Benchmark AMC had launched products such as Nifty BeES, Gold BeES and Liquid BeES.

Benchmark, founded in 2001, was among the early firms to build a business around passive and quantitative investing. In 2011, Goldman Sachs Asset Management acquired Benchmark Mutual Fund. In 2015, its product suite was later acquired by Nippon Life India Asset Management.

Sanjiv Shah, former Co-founder of Benchmark Asset Management and Director at Lakshya AMC said, “Just like Benchmark, our approach at Lakshya will be rooted in innovation. We aim to design investment solutions that solve real-world investment challenges and simplify investing for a wide range of investors.”

The development comes as India’s mutual fund industry has expanded significantly, growing from about Rs 1 lakh crore in 2001 to over Rs 82 lakh crore at present. Passive strategies, however, account for only about 20 per cent of total assets.

Lakshya AMC’s entry is expected to draw attention from investors, given the founding team’s track record in shaping passive investing in India and the increasing competition in the sector.