VR Logo

In A Limbo

AIG Mutual Fund’s future in India looks uncertain

AIG is a young fund house that has had a reasonable run since its launch in mid-2007. However, its parent, the American Insurance Group, has been in the thick of the global crisis. On September 16, it was the impeding collapse and the subsequent bailout of this insurance giant  that triggered the most severe phase of the global crisis.

At this point of time, AIG's future  in India is completely uncertain. According to the parent company's CEO Edward M. Liddy, AIG is likely to pull out of all non-insurance businesses across the world.

As a result, it looks likely that AIG's fund business in India will be sold off to someone else. The speculation is that AIG will look for a single buyer for its asset management business worldwide. However, it could take some time before AIG's future becomes clear.