Artha Bharat eyes $2B AUM, banks on PM Modi's GIFT City vision

Artha Bharat Group, led by Sachin Sawrikar, aims to increase its AUM to $2 billion in 3 years. The firm has moved from Mauritius to GIFT City, inspired by PM Modi's vision, and is launching a pure gold fund storing physical gold in India.

Artha Bharat Group, led by founder and Group CEO Sachin Sawrikar, is targeting an increase in assets under management (AUM) to $1.5-2 billion over the next two to three years as the fund management company expands its operations in India and strengthens its presence at GIFT City.

Strategic Shift to GIFT City

Reflecting on the company's decision to shift its operations from Mauritius to GIFT City, Sawrikar said, "We came here two years ago. Prime Minister Modi's vision for GIFT City -- this is his dream project. After listening to his vision, we have shifted here from Mauritius."

The group has since expanded its operations and recently opened a 6,000-square-foot office at GIFT City, which can accommodate around 65 people. "Today we have started an office of 6,000 sq.ft. This is one of the biggest fund management companies' offices of GIFT City. About 65 people can sit here," he said.

AUM Targets and Expansion

Sawrikar said the company currently has around $750 million in AUM and has approximately $400 million invested in India. "Our target is that our AUM, which is about 750 million dollars, will increase to 1.5 to 2 billion dollars in the next 2 to 3 years," he said.

As part of its India expansion, the group plans to establish offices across Mumbai, Delhi, Kolkata, Bengaluru, Chennai and Hyderabad. Sawrikar said the company is witnessing rapid growth and is expanding its presence to support that momentum.

New Gold Fund and Investment Strategy

The group is also launching a pure gold fund that will invest in physical 24-carat gold. Sawrikar said, "This is the first fund which will store gold in GIFT City."

The gold will be kept in secured facilities within GIFT City, providing investors, including non-resident investors, an opportunity to hold physical gold in India.

Portfolio Diversification with Gold

On portfolio allocation, Sawrikar said investors should consider having 5-10 per cent exposure to gold because "there is less correlation between gold and equity stocks. There is almost zero correlation. There will be a stabiliser in the portfolio."

Market Outlook and Opportunities

He also sees opportunities across India's banking, technology, IT and manufacturing sectors. "Prime Minister's vision, Make in India -- according to that, there are many sectors," he said, adding that manufacturing is growing rapidly.

Gold Price Forecast

On gold prices, Sawrikar said, "$4,000 is a fair value," and suggested that the correction within a broad $3,000-$5,000 range could provide an opportunity for investors to increase exposure.

Highlighting India's growing investment ecosystem, he noted that monthly SIP investments have risen from around Rs 3,000 crore a decade ago to about Rs 31,000 crore today.

Sawrikar said the growing overseas investment appetite also presents a "big opportunity" for India, provided the sector is appropriately regulated and developed. (ANI)

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