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Informist, Wednesday, Jul. 22, 2026

 

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--Nippon Life: Expect employee expenses in similar range in coming qtrs 
--CONTEXT: Comments by Nippon Life's mgmt in post-earnings analyst call 
--Nippon Life: In a state of readiness on specialised investment funds 
--Nippon Life: Will remove restrictions on gold ETFs invest sooner or later 
--Nippon Life: Remain optimistic on specialised investment funds segment

 

By Pratiksha and Meera Nair

 

NEW DELHI – Nippon Life India Asset Management Ltd. is optimistic and in a "state of readiness" regarding specialised investment funds, the senior management said Wednesday. "On SIF, I think we are in a state of readiness, and as and when we get our approvals, we'll definitely launch the funds," the management told analysts in a post-earnings conference call.

 

Specialised investment funds are a new category of investment products in India, introduced by the Securities and Exchange Board of India last year. Specialised investment funds are pooled funds managed by asset management companies but come with a higher minimum investment and allow advanced, flexible investment strategies that regular mutual funds cannot use.

 

Nippon Life sees specialised investment funds as an important part of their business strategy going forward. "We want to be very clear that the (specialised investment fund) products we are going to be launching are very highly differentiated and from pure mutual fund play," the officials said.

 

The asset management company's net profit rose over 27% on year to INR 5.04 billion in the June quarter. Sequentially, the net profit grew nearly 31%.

 

In June, Nippon India Mutual Fund had imposed temporary restrictions on certain subscriptions in two of its gold-focused schemes, citing prevailing market conditions. The restrictions applied to Nippon India ETF Gold BeES and Nippon India Gold Savings Fund. About this, the management said it will be difficult to give a timeline on when the restrictions would be removed. However, "we continuously keep evaluating and may sooner than later open it", it added. 

 

The company's total exchange-traded fund quarterly average assets under management rose 40% on year to INR 2.43 trillion in the June quarter. Of this, total gold ETF average assets under management amounted to INR 556 billion.

 

Further, the management expects the employee expenses to be in a similar range as the June quarter in the coming quarters. In Apr-Jun, the company's employee benefits expenditure rose 13% on year to INR 1.39 billion. Total operating expenses rose 19% on year to INR 2.73 billion. Of this, other expenses rose 29% on year to INR 999 million. 

 

The management said the sharp increase in other expenses was mainly because of investing in technology and brand activities on the digital platform. It added that other expenses may rise 18-20% in the next 6-8 quarters. "We will keep doing that (investing in technology). We need to build this over the period, maybe next to 6-8 quarters, in a similar fashion," it said. Wednesday, shares of Nippon Life closed at INR 1,147.90 on the National Stock Exchange, down 1.6% from Tuesday.  End

 

Edited by Rajeev Pai

 

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