American International Group plans to enter the asset management business in India by offering mutual funds, beginning with a real estate fund, Asia Pulse reports. The insurance and investment management behemoth is also considering offering consumer finance products, as well as mortgage guarantees and capital recovery.
In addition, AIG plans to invest $450 million in infrastructure companies in India, including information technology, auto ancillary and services firms. The company would also like to increase its stake in the insurance company it runs in India to 49%, as soon as the government changes its rules to permit it to do so.
"We are planning to enter the mutual fund business very soon," said AIG Country Head Sunil Mehta. "We have applied to SEBI [the Securities and Exchange Board of India] for approval and are awaiting it."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.