SBI MF targets doubling international business in 2-3 years

SBI Mutual Fund (SBI MF) is targeting to double its international assets under management (AUM) over the next two to three years, leveraging its strategic partnership with French asset manager Amundi and expanding its investment offerings through GIFT City (Gujarat International Finance Tec-City). The country’s largest asset manager said its international business has already grown to around $2.5 billion, and it aims to increase that to approximately $5 billion by broadening both inbound and outbound investment products while strengthening businesses beyond traditional mutual funds.

The expansion strategy comes as SBI MF prepares for its upcoming initial public offering (IPO) and seeks to diversify revenue streams through portfolio management services (PMS), alternative investment funds (AIFs), specialised investment funds (SIFs), and offshore investment solutions. GIFT City is expected to play a central role in this international growth strategy by serving as a gateway for global investors looking to access Indian markets and for Indian investors seeking overseas exposure.

SBI MF Targets Doubling International Business

Speaking about the company’s long-term strategy, SBI Funds Management Managing Director and CEO Debasish Mishra said the asset manager plans to significantly scale its overseas operations.

Key highlights include:

• Current international AUM of around $2.5 billion.
• Target to double international business within 2–3 years.
• Growth supported by strategic partner Amundi.
• Continued expansion beyond the core mutual fund business.
• Greater focus on global investment products.

The company believes increasing cross-border investment opportunities will become an important growth driver as Indian investors seek global diversification and overseas investors show greater interest in India’s financial markets.

Expanding Product Offerings Through GIFT City

SBI MF is strengthening its presence in GIFT City, India’s International Financial Services Centre (IFSC), by expanding both inbound and outbound investment products.

According to the company:

• It already offers inbound investment funds.
• It has launched an outbound Fund of Funds (FoF).
• Additional international products are under evaluation.
• A feeder fund linked to its Focus Equity Fund is already operational.
• More global investment strategies are expected to be introduced.

The expansion is intended to make GIFT City a comprehensive platform for serving non-resident investors, foreign institutions, and Indian investors seeking international exposure.

Diversifying Beyond Mutual Funds

While mutual funds remain SBI MF’s core business, the company is investing across multiple high-growth wealth management segments.

Its expansion priorities include:

• Portfolio Management Services (PMS).
• Alternative Investment Funds (AIFs).
• Specialised Investment Funds (SIFs).
• International investment solutions.
• GIFT City-based products.
• Cross-border asset management.

Management says these businesses will complement its traditional mutual fund franchise and help create additional long-term revenue streams.

Amundi Partnership Drives Global Growth

SBI Funds Management is a joint venture between State Bank of India (SBI) and Amundi, Europe’s largest asset manager.

The partnership provides:

• Global investment expertise.
• International distribution capabilities.
• Cross-border product development.
• Access to overseas investors.
• Global research and portfolio management support.

The company credits this collaboration with helping expand its international business over the past several years.

Why GIFT City Matters

India has positioned GIFT City as its premier international financial hub, offering regulatory and tax advantages for global financial institutions.

For asset managers, GIFT City enables:

• International fund launches.
• Offshore investment vehicles.
• Easier access for global investors.
• Cross-border wealth management.
• Foreign currency-denominated investment products.

As more financial institutions establish operations in GIFT City, competition is expected to intensify across international asset management.

IPO Adds to Growth Story

SBI MF’s international expansion comes just ahead of its highly anticipated IPO, which is expected to be one of India’s largest asset management listings.

Investors will closely monitor:

• Growth in international AUM.
• New GIFT City product launches.
• Expansion of PMS, AIF, and SIF businesses.
• Profitability of non-mutual fund segments.
• Continued inflows into domestic and offshore funds.

A successful international expansion could strengthen SBI MF’s long-term earnings profile while reducing its dependence on domestic mutual fund flows.

Outlook

SBI Mutual Fund’s plan to double its international business within the next two to three years reflects the growing globalization of India’s asset management industry. Backed by its partnership with Amundi and an expanding presence in GIFT City, the company is building a broader platform that spans mutual funds, offshore investment products, PMS, AIFs, and specialised investment solutions.

As Indian investors increasingly diversify globally and international investors seek exposure to India’s fast-growing economy, GIFT City is expected to become a key growth engine for SBI MF. Combined with its upcoming IPO and leadership position in the domestic mutual fund market, the company’s international strategy could play a significant role in shaping its next phase of expansion.