Thứ Sáu, Tháng Sáu 9, 2023
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Nippon India Mutual Fund Adds Most folios in Fiscal Year 23

Managing Director Sundeep Sikka said the growing awareness of mutual funds and the ease of trading through digital leverage has increased Nippon India Mutual Fund investor accounts by nearly 2 core for fiscal year 2023, making it the largest fund in terms of folios.

The fund house has seen consistent growth in the number of its portfolios over the past two fiscal years (Fiscal Year 21 to FY 2023) as they added 96.42 thousand additional assets. investors’ accounts over the period and in the last financial year alone, it added 26.2k portfolios, according to a data compiled by the Association of Mutual Funds in India ( AMFI).

In terms of folios, the numbers jumped from 99.82 lakh in March 2021 to 1.7 lakh in March 2022 and finally 1.96 lakh in March 2023, the data shows.

Sikka, CEO of Nippon Life India Asset Management, said the adoption of mutual funds as an investment product, coupled with digital push, has fueled growth in number of folios.

“We are a retail-oriented mutual fund and our focus has always been on retail. In this industry, AUM (assets under management) is important but for financial inclusion it is important to attract investors. retail investment is very important. These investors come from all over the country and even in states like UP, Bihar and Assam, we have our investors,” he told PTI.

Market leader

Nippon India Mutual Fund (NIMF) is the comfort leader when it comes to both additions as well as total leaves in fiscal year 23. ICICI Prudential MF achieved second place by adding 19.21 lakh folios in the last financial year, bringing the total to 1.66. crore. This was followed by HDFC Mutual Fund which added 15.14 lakh folios to 1.14 crore, SBI Mutual Fund which added 14.08 lakh folio to 1.22 crore and Kotak Mahindra Mutual Fund which added 8.95 lakh folio to 64 ,7 lakhs.

Overall, the 42-player mutual fund industry added 1.62 crore folios between 2022-23 to a total of 14.57 crore in March 2023 from 12.93 crore in March 2022.

Folios are numbers assigned to individual investor accounts. An investor can have multiple folios.

Focus on cities/small towns

According to Sikka, most of Nippon India Mutual Fund’s investors are in the retail sector and the company’s focus is in cities and small towns.

With assets under management of Rs 2,93 lakh as of March 2023, Nippon India Mutual Fund (NIMF) is among the top five mutual funds in the country.

Sikka says the company focuses on small towns, receiving 19% AUM market share from B30 cities (outside the top 30 cities), which is 16% higher than the industry average.

“It is exhilarating to see the growth in folios and AUMs as we are not a bank-funded asset management company,” he said.

Sikka said the fund continues to strengthen its brand and is supported by a diversified product basket, rigorous risk management processes and an experienced research team.

Digital platforms gain traction

Beyond traditional avenues, NIMF’s business is gaining traction on its digital platforms with digital contributions to the company’s business transactions increasing by 53%.

Reliance Mutual Fund was renamed to Nippon India Mutual Fund in 2019 after acquiring Reliance Capital’s wealth management division by the Japanese insurance company Nippon Life Insurance Company. Now, NIMF is the largest foreign-owned AMC in India, of which Nippon Life Insurance Company holds a 73.66% stake.

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