Nippon Life India Asset Management Ltd (NAM India) has set its focus on alternative investments, global expansion and digital transformation as the company seeks to diversify growth beyond its mutual fund business, according to Managing Director & CEO Sundeep Sikka.
In his message to shareholders in the company’s Annual Report 2026, Sikka said the asset manager continues to prioritise growth in its non-mutual fund businesses, particularly Alternative Investment Funds (AIFs) and offshore operations.
DWS partnership to boost AIF business
Sikka said the company’s AIF business is on a strong growth trajectory and is expected to gain further momentum following DWS’ acquisition of a 40% stake in the business. The investment forms part of the broader strategic collaboration announced between NAM India and DWS, one of Europe’s leading asset managers, in November 2025.
The partnership is expected to strengthen NAM India’s capabilities in alternative investments and expand its reach among institutional and global investors.
Expanding India’s global investment gateway
Highlighting the company’s international ambitions, Sikka said NAM India is strengthening its position as a gateway for global investors seeking exposure to India.
Through its Singapore subsidiary, Nippon Life Asset Management Singapore (NAMS), the company serves investors across Asia, the Middle East, the UK, the US, Latin America and Europe.
Leveraging the network of Nippon Life Insurance and its affiliates, the company facilitates global capital flows into India while also enabling Indian investors to access overseas markets such as Japan and Taiwan.
Sikka said NAM India remains committed to deepening financial and investment ties between India and Japan through bilateral capital movement. The company has enhanced access for Japanese investors to Indian markets through GIFT City, supported by Japan’s Nippon Individual Savings Account (NISA) scheme.
In collaboration with the Indian Embassy in Japan, the asset manager has actively promoted India as an investment destination for Japanese capital, contributing to stronger economic engagement between the two countries.
SIF emerges as strategic priority
Sikka said Specialised Investment Funds (SIFs) remain a key strategic priority for the company. NAM India has already established a dedicated team to build differentiated products in this emerging segment.
Digital transactions rise 19%
On the technology front, Sikka said the company continued to strengthen its digital-first strategy during FY26.
Digital transactions, including lumpsum investments and new SIP registrations, increased 19% during the year to reach 17 million transactions, reflecting the scale and effectiveness of the company’s digital ecosystem.
He said NAM India remains focused on delivering seamless and customer-centric digital experiences while accelerating its digital transformation agenda. The integration of advanced analytics and artificial intelligence has also helped improve customer lifetime value.
Passive assets cross ₹2.5 lakh crore
NAM India further consolidated its leadership in the passive investment segment, with passive assets under management crossing ₹2.5 lakh crore during FY26.
As of the fourth quarter of FY26, ETF quarterly average assets under management stood at ₹2.42 lakh crore, giving the company a market share of around 21.4%, up 234 basis points from the previous year.
The company maintained a 45% share of industry ETF folios and a dominant 52% share of ETF trading volumes.
Sikka said gold and silver ETFs witnessed significant growth during the year, supported by a rally in precious metal prices. The company’s Gold ETF ranked among the world’s top 10 ETFs by inflows during calendar year 2026 up to April.
Systematic flows remain resilient
Despite volatile market conditions, systematic inflows grew 17% year-on-year to ₹42,341 crore during FY26.
Systematic AUM also rose 17% to ₹1.52 lakh crore, while the annualised systematic transaction book reached approximately ₹44,700 crore as of March 2026.
Sikka noted that the company’s SIP assets continue to exhibit stronger investor stickiness than the broader industry. More than 45% of its equity AUM is now sourced through systematic flows, significantly higher than the industry average.
“The stability of systematic flows compared to lumpsum investments underpins a strong base for continued future growth,” he said.