Nippon Life India AMC and Nissay AMC join hands to provide access of Indian capital market to japanese investors

India is increasingly attracting inflows from foreign investors, including Japan, and NAM India is committed to becoming a gateway for Japanese investments into India.

In this pursuit, Nippon Life India Asset Management acting through its IFSC branch in GIFT City has launched the “Nippon India ETF Nifty 50 BeES GIFT”. The fund will be a feeder fund into Nippon India ETF Nifty 50 BeES, which is the oldest and first ETF in India investing in the top 50 companies in India based on market cap, according to a release.

Also Read | Row over smallcap mutual fund SIPs: Investors have made double-digit XIRR in 5 years


The fund’s launch comes at a time of strengthening 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.

Its partner Nissay Asset Management Corporation, Japan, wholly owned by Nippon Life Insurance Company, has launched the 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 a 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 Nissay India Equity Fund stands out for its use of GIFT City, a special economic zone in India that provides exclusive tax incentives. The Fund will benefit from reduced taxes on profits from Indian-listed ETFs, reducing operational costs and offering a more efficient investment solution for clients.

Also Read | 15 smallcap mutual funds lose over 35% on SIP investments since market peak

Currently, NAM India advises four (4) India-focused funds in Japan and through its subsidiary manages three AIFs in India with underlying Japanese investors. The said funds invest across diverse sectors, including real estate, ETFs, and venture capital, all aiming to provide Japanese investors with access to India’s capital market.

“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 minimizing costs. This milestone reflects the growing investment and business ties between India and Japan,” said Sundeep Sikka, Executive Director & CEO of Nippon Life India Asset Management.

"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," said Hiroshi Ozeki, President and Chief Executive Officer of Nissay Asset Management.