Lakshya AMC gets SEBI nod, marks return of ETF pioneers

Summary: Lakshya AMC has secured SEBI's approval to begin mutual fund operations, marking a significant entry into India's asset management landscape. What sets it apart, and can it redefine passive investing for Indian investors? We take a closer look.

The Indian mutual fund industry just got bigger as a new fund house, Lakshya AMC, received the green light from SEBI (Securities and Exchange Board of India) to commence mutual fund operations. It will be sponsored by Wealth First Portfolio Managers, a listed wealth management firm and headquartered in Ahmedabad.

However, Lakshya AMC isn’t just any other new fund house. Its founding team comprises Sanjiv Shah, Rajan Mehta and Sanjay Gaitonde, the minds behind Benchmark AMC, which introduced ETFs (exchange-traded funds) in India and launched products such as the Nifty BeES, Gold BeES and Liquid BeES.

Benchmark, founded in 2001, was among the earliest to build a business around passive and quantitative investing. In 2011, Goldman Sachs Asset Management had acquired Benchmark Mutual Fund and later in 2015, its product suite was eventually 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 timing is significant: India’s mutual fund industry has grown from about Rs 1 lakh crore in 2001 to over Rs 82 lakh crore today, yet passive strategies still account for only about 20 per cent of assets.

For investors, Lakshya AMC’s entry is not just about another fund house, but about whether a team that once defined passive investing in India can do so again, this time in a deeper, more competitive market.

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