Caveat: this is NOT a paid post, I am a shareholder of Reliance Nippon Asset Management, I do some training work with RNAM.

Having said all those caveats, I was happy to read yesterday that RNAM is now owned 75% by Nippon Life Insurance, and they completed the transaction on Friday (yesterday). Of course we all knew it was going to be done – over the past few months, now it is just reached its logical conclusion. So congrats Sundeep Sikka and team – there are many people there so I am just naming the bossman. All the best for a great future.

The Aum that Nippon manages in Japan is perhaps more than the size of the MF industry in India, but it may not be growing at the rate at which it is growing in India. It was not long ago that Maruti Suzuki a small part of Suzuki International, grew faster AND BIGGER than Suzuki international. A great example for SS’s team to emulate.

I was always stunned at the attitude of the team – they must have been told by many companies that they will not invest in an Adag company. Now without that millstone around their neck, I am sure they can run faster. The simple easy to get money – the corporate liquid fund – will find Nippon India (or whatever is the new name) also in its allocation. Good to see some more competition in the top 5 fund houses.

What worked for Rnam so far? I think it is the attitude of SS – the Retail king – who reached out to 300+ locations, the relationship with NJ and other distributors, and the sales effort. I know many IFA who swear by Reliance – for having created self confidence in them. They have a fierce loyalty for Reliance – and I have met the IFA of Reliance across the length and breadth of the country. That will hold them in good stead. In the top mutual funds, I see only Aditya Birla Sun Life Mutual fund putting in similar efforts for reaching out to the investors and the Independent Financial Agents. Happy to have been a part of the process – I have trained in Delhi, Goa, Coimbatore, Bhubaneshwar – N, W. S, and E! and in many centres in between! So congrats, and of course best of luck to all of us for the faster reach, and faster growth.

I would be shocked if Nippon does not grow at a pace faster than the industry and its share does not get better respect (aka PE) in the bourses. It will be India’s only listed Amc, and it will also clearly become the biggest Mnc amc. Franklin Templeton, move over. Or run much faster to regain that space. It will not be easy, but it will be a worthwhile a race.

What really changes for this new company? Well it can attract more funds, and far more importantly, it will become a destination that many other amc employees will now want to join. Who knows maybe the employees who had left earlier may also want to come back. Equity track record is not too bad, and debt too could start attracting traction.

All the best SS and team. I know I did not name you “Retail King”, but please continue to keep that title, there are many people out there with you in that journey. Only hope that we can keep up the pace and heat that you and your team are likely to set!