Jefferies plans entry into India’s fast-growing mutual fund market

Core Insights - Jefferies Financial Group Inc is preparing to enter India's $900 billion asset-management industry, aiming to capitalize on the rapid growth of one of the world's fastest-growing economies [1] - The firm has appointed Milind Barve, former head of HDFC Asset Management Co, as an adviser to help shape its strategy and navigate regulatory approvals [1][2] Industry Growth - India's mutual fund industry has experienced significant growth since the pandemic, with total assets more than doubling in the past five years and average inflows through monthly recurring equity plans reaching approximately $3 billion since April [2] - The stock market value in India has also more than doubled to $5.1 trillion over the past five years, driven by strong participation from retail investors [5] Competitive Landscape - Jefferies will face intense competition from established fund houses backed by major banks such as HDFC Bank Ltd, ICICI Bank Ltd, and State Bank of India, which have extensive distribution networks across the country [3] - The firm will also compete with global players like BlackRock Inc, which has recently re-entered the Indian market, and fintech rivals such as Groww and Zerodha, which are challenging traditional asset managers [4] Company Performance - Jefferies is experiencing a global rebound in dealmaking and money management, reporting record revenue of $2.05 billion in the September quarter, a 22% increase from the previous year [6] - Net revenue from asset management has nearly tripled, indicating the firm's growing ambitions in this sector [6]