Goldman Sachs plans MF debut

The New-York based Goldman Sachs, one of the world's oldest and largest investment banking firms, plans to enter the buoyant mutual fund business in India.

The company, which severed ties with Kotak Mahindra last March, joins other global majors JP Morgan, American International Group, Credit Suisse, Korea's Mirea Assets Group, which are planning their solo debut.

Last week, JP Morgan and AIG got the capital market regulator's approval for starting their operations in India.

An official spokesperson for Goldman Sachs said: "We have no comment at this time."

Post the break-up in March last year with Kotak Mahindra Bank, Goldman chartered out its own investment banking and securities business in the country. In December, its investment banking and institutional broking business got the regulators' approval.

Initially, Goldman plans to invest $1 billion over the next three years in India. As of 2006, its assets under management was worth $676 billion. Of which, investments in equities stood at nearly $215 billion.

Investment banking, trading and principal investments and asset management and securities services are the company's core businesses.

According to Lipper Research, since June 2006, Goldman has a total net assets of $83.80 million invested in BRIC markets.

Its top 10 holdings include Sberbank Oao (3.90 per cent), China Construction bank (3.77 per cent), and UTI Bank Ltd (3.31 per cent).