Mutual fund house Daiwa Asset Management India, part of Japan's Daiwa Group, today said

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that the investors might turn bullish in the next quarter, although with a cautious approach, if the central bank manages to tackle the liquidity issues.

"The January-March, 2012 quarter might see a mood of cautious bullishness among investors, if the Reserve Bank of India takes care of the liquidity situation," Daiwa AMC Head (Fixed Income) Killol Pandya told PTI over phone from Mumbai.

He said that the mutual fund industry is witnessing a downfall, as the customer is "not excited" to enter the market. The total assets under management of the fund houses declined by 2 per cent in November, 2011.

"Underlying asset class itself is suffering, equity market is on a downhill. Thus, investor is not excited to enter the market," Pandya said.

Speaking about Daiwa AMC, he said that being a new and relatively smaller fund, it has been able to cross Rs 1,000 crore between January, 2011 and November, 2011.

"The reason for the bullish response to our company, when the MF industry is facing challenges, is that when an entity is very small, the per centage growth is large.

"Since Daiwa has taken over (in January 2011), a lot of strategies have changed. (The) manpower increased, (we) launched new products, the overall footprint in mindset of investor is increasing. Our funds are also doing well," he said.

He added that all the five products of the company (which is the investment manager to Daiwa Mutual Fund) -- Daiwa Liquid Fund, Daiwa Treasury Advantage Fund and Daiwa Government Securities Fund -- have received a good response within a year of launching them.

"All our products have received pretty good response in less than a year of their launch, despite us being the 37th fund in the country," Pandya said.

"Going ahead, we want to tap the orthodox spaces in the near future like hybrid MIP, SIP, etc," Pandya said.

"Products like gold ETFs are also eventually in the pipeline but we need to iron out a few modalities before launching them," he added