Shares of Reliance Nippon Life Asset Management on Monday ended the day at Rs 277.35 gaining Rs 6.25, or 2.31%, on BSE.
Reliance Mutual Fund has been renamed as Nippon India MF, after Japan’s largest life insurance company Nippon Life Insurance acquired 75% stake in the company. Nippon Life Insurance has invested around Rs 8,000 crore in the Indian fund house since 2012.
Hiroshi Shimizu, president, Nippon Life Insurance Company, said: “We had initially invested in Indian life insurance business in 2011 and Indian asset management business in 2012. We had entered India at right time in both asset management and life insurance businesses with long-term vision and the completion of this transaction echoes our commitment for India. Indian Asset Management space is quite attractive and has a long-term growth potential which is in line with our goals. We believe that the core management team and the entire team at Nippon India Mutual Fund will be key driver in the growth story.”
Nippon Life Insurance will hold 75% stake in the company while 20% is with public and around 4.28% with Reliance Capital. Shares of Reliance Nippon Life Asset Management on Monday ended the day at Rs 277.35 gaining Rs 6.25, or 2.31%, on BSE.
The data from the Association of Mutual Funds in India (Amfi) show that, average assets under management (AAUM) of Nippon India Mutual Fund stood at around Rs 2.02 lakh crore for the July-September quarter.
Sundeep Sikka, ED and CEO, Nippon India Mutual Fund, said: “In the last four years, our market share has come down from around 12% to 8.5%, but in that period our retail market share continue to go up. We are hopeful that going forward, we will recover the market share which we have lost and again reach at the top position.” He also added that as a listed company “our main focus would be on profitability and long-term sustainability growth”.
In the last few years, Nippon India Mutual Fund has slipped from its top position in terms of AAUM. For the July-September quarter of 2014, AAUM of Nippon India Mutual Fund was Rs 1.22 lakh crore and was ranked third in terms of AAUM. But for the July-September quarter, it was ranked fifth in terms of AAUM, show Amfi data.