IDBI Asset Management hopes to close this year with total assets under management (AUM) of Rs 6,100 crore in its second year of operations. The company, a subsidiary of IDBI Bank, started operations in April 2011.

Though the company has already clocked assets of Rs 6,100 crore under management, as on December 2011, the full year figures may not be very different, company officials said.

“Looking at the volatility in the markets and since the value of assets is also dynamic, we hope to close the year with the same level of Rs 6,100 crore of assets under management,” said B Sarath Sarma, executive director, IDBI Asset Management said.

This is despite the launch of the new debt product, IDBI Dynamic Bond Fund, which opened for subscription on Tuesday.

“Whenever interest rates appear to go down, bond prices move up. Since the RBI has slashed CRR (cash reserve ratio) indicating that there may be no further rate hikes and equity markets still volatile, we expect a good response. We hope that our new debt product does as well or even better than the gold ETF that we launched recently,” Sarma said. Mutual fund (MF) companies are barred from forecasting the fund-raising target for specific funds.

The company mopped up Rs 107 crore for its gold ETF product launched in October 2011.

Of the Rs 6,100 crore worth AUM, debt funds constituted about Rs 5,000 crore and non-debt funds including equity and gold ETF constituted the rest.

Unlike other MFs that have a larger or an equal number of equity funds compared with non-equity funds, IDBI Asset Management, which came into being after the stock market fall of 2008, has about 15 debt products and only two equity products apart from a gold ETF.

Last year, the company managed a total of Rs 2,000 crore worth AUM, of which, Rs 1,800 crore were debt instruments, and the remaining Rs 200 crore were equity-related instruments.

rsrividhya@mydigitalfc.com