Nippon India Mutual Fund (formerly Reliance MF) has reported 20 per cent increase in September quarter net profit at ₹137 crore, aided largely by lower tax outgo.

Total income during the quarter was down 24 per cent at ₹323 crore (₹424 crore). Commission and fee expenses reduced to ₹14 crore (₹56 crore) which pulled down overall expenses to ₹164 crore against ₹262 crore.

Interestingly, profit before tax during the quarter was down two per cent at ₹158 crore.

Tax outgo during the quarter was halved to ₹22 crore (₹49 crore).

Sundeep Sikka, ED & CEO, Nippon India MF said the company was awarded an international equity mandate and remain confident that it will continue to leverage Nippon Life’s global network for international and alternate businesses to get higher share of foreign flows into India.

Asset under management of the mutual fund business was down 17 per cent at ₹2.02 lakh crore. However, overall asset under management was up 12 per cent at ₹4.53 lakh crore.

The fund house recorded an inflow of ₹10,220 crore (annualised) from 32 lakh Systematic Investment Plan accounts.

It has attracted mandate to manage $500 million învestment corpus in equity from international institutional investors.

The fund house had one of the largest retail assets in the industry at ₹51,895 crore and equity assets as proportion to its MF assets grew to 43 per cent from 37 per cent.

NIMF has AUM of ₹39,278 crore from ‘Beyond the Top 30 cities’as of September quarter.

Category-II and -III Alternative Investment Funds have a total commitment of about ₹2,700 crore across various schemes. Digital purchase transactions increased 54 per cent to touch 3.69 lakh.

Shares of the company were down six per cent at ₹319 on Thursday.

Published on October 24, 2019