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Published: May 31, 2024
Updated: May 31, 2024

Nippon Life India Asset Management

The fastest-growing mutual fund

Nippon Life India Asset Management is in fine fettle. The company has continued to increase its marketshare for the fourth straight quarter ended March 2024. The marketshare in the equity segment shot up over 9 bps in Q4 FY2024 and 58 bps in fiscal year 2024 to 6.76 per cent

Pointing out that "the company has witnessed an improvement in marketshare by 30 bps in Q4 and 73 bps in FY2024," Mr Sikka added that "the marketshare has increased to 7.97% with strong growth across all fund categories. The company has improved two positions to 4th in terms of equity mutual fund AUM, excluding arbitrage funds. Individual AUM has increased by 10% qoq to Rs 2,57,800 crore with marketshare rising by 8 bps to 7.74%."

B30 MARKET

According to him, in the corporate segment, the AUM has also increased by 16% to Rs 1,84,200 crore with an improvement in marketshare by 70 bps to 8.49%. The company is the fastest growing AMC in the B30 market, recording a 9% qoq growth in the AUM to Rs 86,200 crore. The B30 marketshare has improved by 6 bps in Q4. B30 accounts for 20% of the AUM of the company as against 18% for the industry. With 16.5 million unique investors, the company serves one out of 3 mutual fund investors in the country.

Nippon Life has continued to grow its SIP book for 11 straight quarters with a strong incremental marketshare of 15%. The SIP marketshare has increased by 305 bps to 9.1% in FY2024. About 62% of the SIPs have continued for 5 years and more, as compared to 28% for the industry. More than 75-80% of the SIPs is in the less than Rs 10,000 category. The company continues to be the largest player in the ETF segment with AUM of Rs 1,11,500 crore at endMarch 2024. The marketshare stands at 16.7% with an improvement of 135 bps in Q4FY2024. The company has a marketshare of 60% in the ETF folios and 61% in the ETF volumes on BSE and NSE.

The tax rate was lower for the current quarter due to movement of some investment from the short term to long term and reversal of tax provisions for a previous year after completion of the assessment.

The segment-wise yield stands at 63 bps for equity, 25 bps for debt, 10-12 bps for liquid and 16 bps for ETF. The overall yield has declined by 1 bps in Q4FY2024. Excluding the ESOP related expenses, the operating expenses of the company are expected to increase by 8-10% for FY2025.

STAFF SOPS

Nippon Life has also approved ESOPs, the cost of which at Rs 85-90 crore would be spread over 4 years. Of this, 20% would be recognized in FY2025. On the mutual fund industry fund, the AUM has increased by 10% on a sequential basis and 34% over a year ago to Rs 54.1 lakh crore at end-March 2024. The share of equity assets has surged to 58% from 52% last year. The equity segment witnessed gross inflows of Rs 1.94 lakh crore and net inflows of Rs 79,800 crore in Q4FY2024, exhibiting an improvement over a quarter ago.