 "Reliance MF expects big gains from demonetisation as investors opt for safer assets")
Reliance Mutual Fund, a part of Reliance Capital, has crossed Rs 2 lakh crore in assets under management (AUM) and expects big gains from demonetisation.
With this, Reliance Nippon Life Asset Management now manages over Rs 3.3 lakh crore in total AUM and retains its position as the largest asset manager in the country.
Reliance Mutual Fund is the third fund house to cross the 2 lakh crore AUM mark after HDFC MF and ICICI MF. Overall, the industry has 43 fund houses.
"Yes, we have crossed the Rs 2 lakh crore AUM mark on our daily AUM. However, this number will be reflected in the official data released by AMFI at the end of the quarter," said Reliance Nippon Life Asset Management Ltd Executive director and CEO Sundeep Sikka while speaking to PTI.
Reliance Mutual Fund has seen a significant rise in its debt AUM this year, which surged from Rs 96,800 crore in March 2016 to Rs 1,27,000 crore in October this year.
"We expect a strong momentum from the recent demonetisation initiative by the government. We see this as a huge positive for the entire MF (mutual fund) industry which will be a strong beneficiary as investors opt for safer and more structured avenues for wealth creation," Sikka added.
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The MF industry reached close to Rs 16.3 lakh crore in AUM during October 2016 and the industry is aiming to cross the Rs 20 lakh crore mark soon as more and more money is channelised into banks and the country moves towards a digital economy.
"Demonetisation has accelerated our growth and will enable huge inflows into the economy and stock market through structured investment routes. We see the MF industry crossing the Rs 20 lakh crore mark very soon," said Sikka.
The government on November 8 demonetised Rs 500 and Rs 1,000 notes in a step to curb black money.