Growing awareness about mutual funds and the benefit of transactions via digital push led Nippon India Mutual Fund’s investor accounts to surge to just about 2 crore on the finish of the monetary yr 2022-23, making it the most important fund home in phrases of folio rely, its CEO Sundeep Sikka mentioned.
The fund home has seen constant development in its folio rely over the past two monetary years (FY21 to FY23) because it added 96.42 lakh buyers’ accounts through the interval and in the previous fiscal solely, it added 26.2 lakh folios, in accordance to an information compiled by the Association of Mutual Funds in India (Amfi).
In phrases of complete folio rely, the numbers have elevated from 99.82 lakh in March 2021 to 1.7 crore in March 2022 and eventually 1.96 crore in March 2023, the info confirmed.
Mr. Sikka, who’s the CEO of Nippon Life India Asset Management Company, mentioned that the acceptance of mutual funds as an funding product, together with digital push, have fuelled the expansion in folio rely.
“We are retail-oriented mutual funds and our focus has always been retail. In this industry, AUM (assets under management) is very important but for financial inclusion, getting retail investors is very important. These investors are coming from across the country and even in states such as UP, Bihar and Assam, we have our investors,” he informed PTI.
Nippon India Mutual Fund (NIMF) is the comfy chief on the subject of each addition in addition to complete variety of folios in FY23. ICICI Prudential MF scored the second place by including 19.21 lakh folios in the final fiscal that took the overall rely to 1.66 crore. This was adopted by HDFC Mutual Fund which added 15.14 lakh folios to 1.14 crore, SBI Mutual Fund added 14.08 lakh folios to 1.22 crore and Kotak Mahindra Mutual Fund added 8.95 lakh folios to 64.7 lakh.
Overall, the 42-player mutual fund trade has added 1.62 crore folios in the 2022-23 to a complete of 14.57 crore in March 2023 from 12.93 crore in March 2022.
Folios are numbers designated to particular person investor accounts. An investor can have a number of folios.
According to Mr. Sikka, most of Nippon India Mutual Fund’s buyers are in the retail class and the corporate’s focus is on small cities and cities.
With an property below administration of ₹2.93 lakh crore as of March 2023, Nippon India Mutual Fund (NIMF) is among the many high 5 mutual funds in the nation.
Mr. Sikka mentioned the corporate, which focuses on small cities, will get 19% of its AUM market share from B30 cities (locations past the highest 30 cities), which is greater in comparison with 16% for the trade common.
“It is heartening to see growth in the folio numbers and AUM as we are not a bank sponsored asset management company,” he mentioned.
The fund home continues to strengthen its model, and is supported by a large product basket, robust threat administration course of and skilled analysis crew, Mr. Sikka mentioned.
Apart from conventional avenues, NIMF enterprise is gaining traction on its digital platforms with digital contributions to the corporate’s enterprise transactions rising to 53%.
Reliance Mutual Fund was renamed as Nippon India Mutual Fund in 2019 following the acquisition of Reliance Capital’s asset administration arm by Japanese insurer Nippon Life Insurance Company. Now, NIMF is the most important foreign-owned AMC in India, whereby Nippon Life Insurance Company holds 73.66% stake.
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