Jefferies Financial Group Inc. is preparing to enter India’s $900 billion asset management sector, as reported by sources familiar with the situation. The firm is joining a wave of international financial entities aiming to capitalize on one of the fastest-growing major economies globally.
To navigate regulatory approvals and define its strategy, Jefferies has enlisted the expertise of Milind Barve, the former head of HDFC Asset Management Co., the sources disclosed, speaking on condition of anonymity due to the private nature of the information.
Since the pandemic, India’s mutual fund industry has experienced significant growth, with households transitioning from traditional investments in gold and real estate to financial assets. The total assets under management have more than doubled over the past five years, with average inflows through monthly recurring equity plans reaching approximately $3 billion since April.
A Jefferies spokesperson declined to provide any comments, and Barve has not responded to requests for remarks.
The firm will face considerable competition from established fund houses affiliated with major banks, including HDFC Bank Ltd., ICICI Bank Ltd., and State Bank of India, all of which have extensive distribution networks throughout the country. Additionally, it will compete against global firms like BlackRock Inc., which has re-entered the Indian market after a seven-year absence, recently launching actively managed funds in partnership with Jio Financial Services Ltd., owned by billionaire Mukesh Ambani. Competing fintech platforms such as Groww and Zerodha also challenge the dominance of traditional players.
In the past five years, India’s stock market value has surged, surpassing $5.1 trillion, driven by robust participation from millions of retail investors. This investor confidence has remained steady, even as Indian stocks lag behind emerging-market peers in the past year, with foreign investors pulling back amid concerns over earnings growth and high valuations. However, a significant market correction could test the enthusiasm of domestic investors.
Globally, Jefferies is benefiting from a resurgence in deal-making and money management, having reported a record revenue of $2.05 billion in the September quarter, reflecting a 22% increase from the previous year. Net revenue from asset management nearly tripled due to stronger fund performance, highlighting the firm’s escalating ambitions in this sector.
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Published on October 6, 2025.
