Ruling out mergers and acquisitions in the immediate future, JM Mutual Fund, with assets nearing Rs 4,500 crore (Rs 45 billion), on Thursday said it was planning to launch three more schemes by the first quarter of 2004-05 and wanted to build a brand equity by branching out across the country.

"It is very unlikely," JM Mutual Fund chief executive officer Krishnamurthy Vijayan told PTI when asked about any plans for mergers and acquisitions in view of consolidation being faced in the over Rs 1,30,000 crore (Rs 1,300 billion) industry.

JM Mutual Fund, whose assets stood at Rs 4,347 crore (Rs 43.47 billion) till February end, aims to position itself in the Indian market by concentrating on value services rather than asset growth per se, he said.

The fund's assets had grown by over 126 per cent to Rs 2,776 crore (Rs 27.76 billion) in 2002-03 from Rs 1,228 crore (Rs 12.28 billion) in the previous year. The mutual fund industry has been witnessing impressive performance mainly due to the booming capital markets in the last one year.

Krishnamurhty said the focus would be more on the retail segment. Product launches were on the anvil for which the company had got the necessary approvals from the Securities and Exchange Board of India.

"We are launching Pravasi Bandhu, aimed mostly at the unskilled, semi-skilled and skilled non-resident Indians, in April-May 2004-05," he said, adding it was aimed at the retail segment.

It would also launch automobile sector and healthcare funds by June-July, mainly focussed at the corporate clients. With these launches, JM's portfolio would add up to 15 core products.

Krishnamurthy said the fund's strategy was to cater more to the retail segment and has a mix of 50:50 of retail and corporate business.

JM Mutual is also restructuring its product portfolio with debt funds amounting to 75 per cent and the remaining 25 per cent non-debt funds, including equities. Earlier, debt funds alone amounted to 90 per cent of the product portfolio.

Asked about branching out, he said JM Mutual was planning to open six more offices in the next fiscal (2004-05).

"This year itself (2003-04) we would have opened more branches. But we wanted to focus more on client servicing and to create a brand," Krishnamurthy said.