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- Jesus answered, "The scripture says 'Man shall not live by bread alone, but by every word that proceeds from the mouth of God'."

20 Oct 2019


Reliance Nippon Life Asset Management:(Price Rs.267/-) Reliance Nippon Life Asset Management Company is one of the largest AMCs in India with MF assets under management (AUM) AUM of Rs 2.3 lakh as of March 2019. The company has a total AUM of Rs.4.3 lakh crore, which has grown at an 18 percent CAGR in the last 10 years. Of all the financial savings products, mutual funds are the most under-penetrated in India with an AUM/GDP of 12 percent, against a global average of 55 percent, the brokerage said. However, there has been a rise in the proportion of mutual funds as an investment option from 1.4 percent in FY12 to 2.9 percent in FY16, which may benefit the firm.

The Competition Commission of India (CCI) has given approval to Nippon Life Insurance to acquire up to 75% stake in Reliance Nippon Life Asset Management (RNAM).

In May, Reliance Capital had said it will exit the mutual fund business by selling its stake in RNAM to its joint venture partner Japan's Nippon Life Insurance.

Nippon Life Insurance Company (Nippon) has additionally acquired 6.48 crore equity shares of Reliance Nippon Life Asset Management, representing 10.59% of the total issued and paid up equity share capital of the Company.

Pursuant to such acquisition, Nippon now holds 32.72 crore equity shares representing 53.46% of the total issued and paid up equity share capital of the Company.
Reliance Nippon Life Asset Management acts as an adviser to India-focussed equity funds and fixed-income funds in Japan and South Korea. It also manages offshore funds through its subsidiaries in Singapore and Mauritius, catering to investors across Asia, the US and Europe.

Nippon Life Insurance has increased its stake in Reliance Nippon Life Asset Management (RNAM) to 54 percent, with the closure of open offer. The open offer was part of the stake sale process. Nippon Life floated open offer to acquire nearly 22.49 percent stake in RNAM for Rs 3,179 crore under a deal with Reliance Capital which is exiting the mutual funds business.

Good stock for portfolio holding minimum 10 years. Fundamental Analysis: 1) comparing the valuation it`s very cheap then it`s peers especially with HDFC AMC. Which gives room for price appreciation. 2) NIPPON has taken complete control ADAG is out. 3) Promoters faith on top leadership Mr. Sitka. 4) AMC market will only grow due to lower penetration for atleast next 10-15 years. 5) Variety of new products will be launched.

Why buy – Nippon Life Insurance Japan now controls 75% of company, strategy of the company is to focus on leadership in the retail segment, and very strong distribution network.Name may be changed as NIPPON INDIA MUTAL FUND.

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