Wealth management startup Fisdom is looking to enter the asset management sector and will apply for a licence to launch the business, its cofounder and chief executive officer Subramanya SV told ET in an interaction.
Unlike its peer Zerodha which has applied for a mutual fund (MF) licence, Fisdom’s aspirations for its AMC are towards launching portfolio management services (PMS) for high net-worth individuals (HNIs) on its platform.
It will set up a separate entity — Fisdom Asset Management Company — under parent entity Finwizard Technology, to apply for the licence.
At present, Fisdom runs a private wealth business which provides wealth management services to HNIs. This continues to be a high-margin business for the firm.
“The AUM (asset under management) growth of PMS over the last five years is more than net equity MF AUM in the country. Our PMS licence will be linked to our private wealth business. There are already enough and more products in the mutual funds space at present. However, to be fair, we may look at an MF licence later,” said Subramanya.
Fisdom may explore at a new funding round to capitalise its AMC, Subramanya added.