Nippon Life India Asset Management (NAM India) and Nissay Asset Management, Japan, join hands to provide access of Indian capital market to Japanese Investors.
NAM India, acting through its IFSC branch in GIFT City, has launched the “Nippon India ETF Nifty 50 BeES GIFT” (Fund). The fund will be a feeder fund into Nippon India ETF Nifty 50 BeES. The fund launch comes at a time of strengthening of India-Japan relations, with both nations increasing trade and investment. GIFT City, as a global financial hub, offers favourable tax and regulatory incentives, making it an ideal location for this fund, the company said in a release.
Nissay Asset Management Corporation, Japan, a wholly-owned by Nippon Life Insurance Company, has launched Nissay India Equity Fund in Japan which will feed into “Nippon India ETF Nifty 50 BeES GIFT” fund. This innovative equity fund is designed to offer Japanese investors a unique opportunity to access India’s rapidly-growing market by investing in exchange-traded funds (ETFs) that track the Nifty50 Index, representing India’s top 50 companies.
“This is first-of-its-kind fund which is launched in the GIFT City, wherein investment will come from Japanese investors and the fund will invest in underlying Nippon India ETF Nifty 50 BeES,” the release added..
Unique opportunity
Sundeep Sikka, Executive Director and CEO, NAM India, said: “With this offering, NAM India continues to serve as a gateway for Japanese capital, with seven funds across various sectors, including real estate, ETFs and venture capital. The Nissay India Equity Fund, supported by GIFT City’s tax incentives, presents a unique opportunity for Japanese investors to participate in India’s growth story while minimising costs. This milestone reflects the growing investment and business ties between India and Japan.”
Hiroshi Ozeki, President and Chief Executive Officer of Nissay Asset Management, commented: “The Nissay India Equity Fund is an important milestone in our efforts to provide tailored solutions for Japanese investors, enabling them to participate in India’s economic growth. By leveraging the tax advantages of GIFT City, we can ensure an efficient and sustainable investment process, which is already gaining an excellent reputation among Japanese investors.”