Nippon Life Insurance Now Holds 75% Stake in RNAM

Reliance Nippon Asset Management (RNAM) is a joint venture of Reliance Capital and Nippon Life Insurance of Japan. Reliance Capital recently completed its sale of 21.54% stake in Reliance Nippon Asset Management (RNAM) to Nippon Life Insurance for ₹3,030 crore. 

With this deal, Nippon raises its shareholding in RNAM to 75%,  whose total valuation now amounts to ₹7,800 crore. Consequently, the name of the fund will be changed to Nippon India Asset Management Company. However, the firm said that there will be no changes in management and structure as of now. Sudeep Sikka will continue as the Managing Director of the Asset Management Company. He said, “We will continue to benefit from Nippon Life’s leading practices in risk management and leverage its global network for our international and alternate businesses.” 

The sale is a part of Reliance Capital’s financial plan to raise money to fulfill its debt obligations. It is also planning to monetise its remaining 4.28% stake in RNAM which is worth ₹700 crore.

Here is List of Mutual Funds offered by Reliance Nippon Asset Management Limited

Equity Mutual Funds

1. Reliance Large Cap Fund
2. Reliance Small Cap Fund
3. Reliance Banking Fund
4. Reliance Focused Equity Fund
5. Reliance Growth Fund

Debt Mutual Funds

1. Reliance Gilt Securities Fund
2. Reliance Income Fund
3. Reliance Liquid Fund
4. Reliance Money Market Fund
5. Reliance Prime Debt Fund

Hybrid Mutual Funds

1. Reliance Arbitrage Fund
2. Reliance Equity Hybrid Fund
3. Reliance Hybrid Bond Fund
4. Reliance Retirement Fund- Income Generation Scheme

This takeover by Nippon Life insurance in RNAM is not expected to affect investors in the AMC’s schemes. However, it is advisable to continue to track the performance of your funds.