Reliance MF is now Nippon India MF

Mumbai: Reliance Mutual Fund is now Nippon India Mutual Fund with Nippon Life Insurance as its new promoter with 75 per cent stake. The new management of the fifth largest mutual fund in India unveiled its new identity and announced the integration of Nippon India Mutual Fund into their global unified asset management fold, by becoming the single largest shareholder in the company.

Nippon India Mutual Fund is aiming to regain its lost market share as the hangover of being a mutual fund belonging to a stressed business house is now replaced by Nippon Life Insurance, as the new promoter which is Japan’s largest life insurance company and a global financial services conglomerate.

Sundeep Sikka, Executive Director and CEO, Nippon India Mutual Fund who continues to lead the company with existing management said, “While the company starts its journey with its new identity, the management team remains committed to take it to the next level of growth with the support of our investors and stakeholders.” Sikka said, “Nippon Life Insurance has been an extremely supportive shareholder for the last 7 years and this transaction would set the stage for the long-term growth of the company. Company will continue its focus to increase market share and increase in profitability.”

Nippon India Mutual Fund (erstwhile Reliance Mutual Fund) established in 1995, lost ground in last 4-5 years as it slipped from top mutual fund by asset under management to fifth largest fund house with average AUM of Rs 2,02,469.49 crore as on September 30, 2019.

“AUM loss we will recover in coming years as our retail market share has been growing,” Sikka said.

Nippon Life Insurance, a 130-year-old financial services conglomerate with significant global presence has over $700 billion in asset under management. “In Japan, about 1 out of 12 is a policyholder of Nippon Life Insurance and they have similar vision in India for their mutual fund business,” the company said.

Nippon India Mutual Fund aims to leverage Nippon Life Insurance’s global network for expanding international and alternate business to garner share of foreign inflows into India.

Hiroshi Shimizu, President, Nippon Life Insurance Company said “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 a key driver in the growth story.”

He further added saying, “We are very keen to incorporate more of global expertise into the mix and further improve upon processes in a steady manner wherever it helps — especially areas such as risk management and governance practices.”

Reliance Nippon Life Asset Management shares rallied 4.89 per cent intra-day to touch a high of Rs 284.80 on the BSE and finally closed 2.31 per cent up at Rs 277.35.