In the first quarterly earnings after the IPO, Reliance Nippon Life AMC (RNAM) posted a good set of numbers driven by strong topline and bottomline growth.
The company reported 25 per cent jump in profit after tax to Rs 130 crore for the December quarter of the current fiscal.
The company's revenues stood at Rs 470 crore in the October-December quarter of the 2017-18 fiscal, a growth of 31 per cent over the year-ago period, RNAM said in a statement.’
Discussing the key features of the numbers and outlook going forward, Sundeep Sikka, ED & CEO, Reliance Nippon Life AMC told CNBC-TV18 that they saw a positive growth in Mutual Funds and alternate investment funds. The company saw a huge inflow of retail funds post demonetistion, he added.
He said, overall assets have growth to Rs 3.8 lakh crore.
The company has been focusing on tier 2 and tier 3 cities, and there is lot of interest from retail investors from these cities and small towns, he said.
Going forward, expect the flows into equities and debt funds to continue as other assets are not so attractive, said Sikka.
In terms of financial assets, India remains still underpenetrated, said Sikka, adding that only 2 percent of population is investing in Mutual Funds.
The more matured investors are expected to move to ETFs, he said.
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