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‘Reliance Mutual Fund’ is now ‘Nippon India Mutual Fund’

By Nivesh Gyan   22 October

Category: General

After acquiring a 75% stake in the Asset Management Company, Japan’s Nippon Life Insurance has changed the name of Reliance Mutual Fund to Nippon India Mutual Fund.

 

With this acquisition, our customers may have the questions around its impact on their portfolios?

 

We will be answering it, but first, let us explain why did this happen!

 

Reliance’s Parent Company “Anil Dhirubhai Ambani Group” was facing Debt crisis for a long time. To tackle this problem, they had to sell their Asset Management Company.

 

Will this have any impact on clients’ investments in the Fund?

No, it won’t affect client’s portfolio because:

 

  1. A 130 year old company, Japan’s Nippon Life is a large financial services group, managing assets of over Rs. 48 lakh crores. It was already holding a 25% stake in the Asset Management Company since 2012, which has now increased to 75% leading to renaming.
  2.  

  3. Company will continue to run its operations without any change in management. 

 

We feel that change in ownership of fund should in fact be positive for the Fund in the long term with better corporate governance practices and infusion of more capital.