Highlights:

The continued faith of the retail and HNI investors has contributed to the mutual fund industry performance. The base of unique investors has increased 15% to 30 million end December 2021. The company expects the mutual fund industry growth to continue and the aim of the Nippon mutual fund is to continue to capture long term growth opportunities.

The company has improved overall market share improved by 22 bps to 7.34% in 9MFY22, showing improvement for third consecutive quarter.

The company has witnessed marginal moderation in equity market share, while expects the inflows to improve.

The AUM of the company has increased 32% to Rs 280600 crore, while improve share of B- 30 from 10.4% to 11.6%. B-30 AUM accounted for 18% of total AUM as against 17% for the industry.

Retail AUM stood at Rs 77600 crore account for 28% of AUM compared with 23% for the industry. As per the company, about 70% of individual assets have a vintage of more than 12 months.

The ETF book stands at Rs 51500 crore with a market share of 13%. The company is the largest player in the ETF industry. It contributes 70% of the ETF volumes on NSE and BSE. The yield on the ETF is 9- 10 bps. The ETF contributes Rs 50 crore to bottomline of the company.

The annualized SIP book of the company has increased to Rs 8200 crore. SIP transaction processed amounted to 3.85 lakh in Q3FY2022. SIP AUM has increased 14% to Rs 2010 crore, while 45% of the SIP AUM has continued for more than 5 years compared with 20% for the industry.

There is pressure on equity AUM yields as most of the rise in AUM is attributable to MTM and as AUM moves up, the TER goes down. Also, the old assets with higher yields are being replaced by new assets. The recent NFOs have been priced aggressively. However, the company would strive for growth but not at the cost of profitability.

The other income of the company has declined to MTM impact on equity holding. As per the company, about 90% of its cash is invested into funds, of which 10% is invested in equities. The bold yields also rose impact the debt investment book of the company.

The company has launched Taiwan-focused fund in Q3FY22 with the AUM garnered at Rs 620 crore. In January 2022, the company has launched Auto ETF and Silver ETF.

The company has continued to enhance product suite to cater to the customer requirements. The company has also filed 11 schemes for regulatory approval. The focus is on sticky quality assets.

The company has received approval for launching office in GIFT City.

The mutual fund distributor count of the company has increased to stands at 83,500 end December 2021.

The share of direct business stands at 55% of AUM.

The market share in unique investors has increased to 33% with customer base of 10 million

The run rate for other operating expense has been Rs 45-50 crore. as per the company, about 70% of the cost is fixed and semi variable and the rest are discretionary expenses such as digital and marketing expenses. The company has been focusing on cost rationalization and the benefits are visible.