Nippon Life India Asset Management 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, which is the oldest and first ETF in India investing in the top 50 companies in India on the basis of market cap.
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.
"Our partner Nissay Asset Management Corporation, Japan, 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", said the company.
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 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.
Currently, NAM India advises four (4) India-focused funds in Japan and through its subsidiary manages three (3) 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.