Executive Director and CEO
Reliance Nippon Life Asset Management Ltd.
Q. Kindly give us brief on your company and the schemes managed by your organization.
Ans: Reliance Nippon Life Asset Management is one of the largest Asset Management Company in India managing AUM of INR 3,878bn. The AMC offers a complete bouquet of investment solutions across Mutual Funds, Exchange Traded Funds (ETFs), Managed Accounts, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs) and Offshore Funds. In short, we are a full-suite AMC and You could call us a financial supermarket, catering to investors right from small cities in India to global ones, with products ranging from a ticket size of INR 500 to INR 1 Cr.
We offer products across asset classes – equity, fixed income, ETFs, hybrid and Gold. We also offer goal-based solutions to help achieve various investment goals like Retirement, Children’s education, etc. Our endeavor is to help investors meet their financial objectives.
Q. What kind of policy changes would you recommend the regulator / government to support the industry’s growth?
Ans: SEBI has provided a robust regulatory landscape for the Industry. Regulator’s role has been forward looking and very supportive for growth of the Industry.
Going forward, we think Equity Linked Savings Schemes (ELSS) need to be carved out for tax saving. Currently, the category is clubbed under Section 80C of the Income Tax Act, which is crowded with other products like public provident fund, insurance, employee provident fund among others. ELSS is suitable for long-term investors to create wealth.
Q. The BFSI industry is constantly evolving by adopting emerging technologies. How does Reliance Nippon Life Asset Management Limited, keeps up with the continuously changing industry environment?
Ans: Digital Technology helps providing seamless customer experience. At RMF, we constantly strive to understand investor needs and utilize technology to bridge the gap between their needs and our offerings.
We have introduced some cutting edge products that Indian MF industry has not seen before. Our ‘Simply Save’ and “Instant Redemption” solutions are some of such offerings. In fact, our futuristic solutions in CONVERSATIONAL COMMERCE are underway.
We consciously invest in keeping ourselves abreast with new technological developments and strive to take such ecosystem to the real Bharat. That is where we believe is the incubation point of the new Digizens of India.
Q. Technologies such as blockchain are rapidly gaining momentum in India. What is your opinion on the regulation of cryptocurrencies such as bitcoin in India? How do you think this will impact the BFSI industry?
Ans: Bitcoin is the most popular use-case of Blockchain. And in India, people have started investing in bitcoins with huge return expectations, however, these are speculated to be in a bubble phase which may burst anytime.
This has also given rise to bitcoin exchanges. Currently, these exchanges remain unregulated. The inter disciplinary committee set up by the Government is a step forward.
Q. What are the key factors that have contributed to the success of Reliance Nippon Life Asset Management Limited? What is the business’s growth strategy over the next 3-5 years?
Ans: At Reliance Nippon Life Asset Management Limited, our approach is to take a long-term view. Even our strategic partnership, has a long-term vision. Our co-promoter, Nippon Life Insurance, the largest private life insurance company in Japan has a legacy of over 128 years. Through this association, we gained access to expertise, new geographies, marketing leverage and best practices in technology, quality and operational processes.
We also attribute our success to a customer-centric approach. We keep our ears to the ground to understand customer needs. Our aim is to cater to investors across the board.
We are also leveraging technology to provide user-friendly experience, and facilitating easy KYC to increase penetration.
Over the years, we have established widespread investor base and long-standing partner relationships. This, along with a robust performance record across multiple market cycles has helped drive our growth.
The core responsibility of any AMC is to create wealth. And, RMF has been successfully creating wealth for its investors over the last two decades.
Going ahead, we would continue to expand our investor base and reach. We intend to increase our reach to 150 new locations in smaller towns over next 3 years. We will continue to offer a diverse suite of MF schemes for retail, and actively explore opportunities to launch relevant and innovative products for High Networth Individuals (HNIs) under the PMS and AIF routes.