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Partner Stories | Nippon India

Partner Stories | Nippon India
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Nippon India Mutual Funds (formerly Reliance Mutual Fund) is one of the leading asset management companies in India. Managing assets to the tune of Rs. 2 lakh crores, NIMF schemes include 52 equity, 266 debt & 40 balanced funds. The company also offers 23 Exchange Traded funds (ETFs) for investors to choose from. NIMF integrated the smallcase Gateway on their website to provide seamless cost-efficient passive investing options to their users via ETFs.

The advent of ETF markets in India happened with the launch of Nifty BeES in 2001 by Benchmark funds. Benchmark was India’s only fund house with a sole focus on ETFs. Benchmark went on to launch India’s first Gold ETF – Gold BeES in 2007. By 2011, the fund house was managing eight ETF products when it was acquired by Goldman Sachs AMC. NIMF (then Reliance Mutual funds) acquired the ETF schemes of Goldman Sachs in 2016, creating a strong foundation in the ETF space.

ETF markets have grown significantly since then with 21 ETFs getting listed on NSE in the last year, making a total of 100 ETFs transactable on the exchange. As of Sept 2019, 90% of Indian ETFs are owned by institutions while limited participation is seen by retail investors. However, this is steadily changing with individual investors beginning to understand the ETF format & its benefits

NIMF has continued to lead this charge with education, setting up a dedicated ETF website for investors to discover available ETF schemes across asset classes & strategies along with indicative net asset value(iNAV). Unlike mutual funds, however, ETFs are exchange-traded instruments i.e. orders have to be placed with a stockbroker and can’t be placed from the ETF website.

Looking to add order execution capabilities to their website, NIMF integrated with smallcase Gateway enabling investors to place ETF orders with their respective stock brokers from the website natively. Investors can choose their brokers from the list, log in with their brokerage account credentials & execute the order.

The company assets under the ETF segment have grown 26% to Rs. 37,272 Cr in March’21 from Rs. 29,456 in March’20. Adding 14 lakh ETF folios in 2021 alone, NIMF has a 42% market share of the total industry ETF folios & contributes 72% share of transaction volumes on exchange.

With retail investors looking to diversify their investments in the equity markets & ETFs providing cost efficiency & liquidity advantages, NIMF is well poised to increase retail participation in the Indian ETFs space

About smallcase Gateway

smallcase gateway is a unified set of APIs and SDKs that facilitate any platform or application to offer exchange-traded transactions (stocks, ETFs, REITs, small cases) in a native and compliant manner with India’s leading brokerage firms, including Zerodha, Upstox, Angel Broking, HDFC Securities, Axis Direct, 5Paisa, and more. It facilitates seamless in-app order placing capabilities, importing holdings, and account opening. Developers can integrate the smallcase gateway in weeks to make the experience fast, simple, and secure for their users. The smallcase gateway is used by India’s most prominent and fastest-growing platforms, including William O’Neil India, Kuvera, Moneycontrol, SBI Mutual Fund.

Learn more at gateway.smallcase.com.

If you are developing an investment platform and want to enable transactions on exchange-traded securities, you can reach us at gateway@smallcase.com. We would love to help you.

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Partner Stories | Nippon India
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