Nippon Life India Asset Management Ltd Management Discussions

INDIAN ECONOMIC OVERVIEW

Economy: According to the second advance estimate of MoSPI, the Indian Economy is likely to have grown at 7.6% YoY in FY26 (FY25: 7.1% YoY). The growth will be driven by robust private consumption and capex. From supply side, growth is likely to be driven by manufacturing, construction, and services. Under the new base year, the three-year average GDP growth over FY24-FY26 is ~7.3% YoY, indicating buoyant domestic growth despite global headwinds (geopolitical & trade uncertainty).

Inflation: CPI inflation has likely moderated to ~2% YoY in FY26 driven by deflation in food and muted core inflation (excluding precious metals). FY26 core inflation is expected to be at ~4% mark (i.e., RBIs medium-term target) and super core inflation (excluding petrol & precious metals) is ~3% YoY, reflecting muted underlying price pressure.

Monetary Policy: The current rate cut cycle saw 125 bps cut driven by benign inflation, while growth remained robust. That said, RBI preferred to maintain neutral stance for most part of fiscal year. RBI continued to remain proactive and pre-emptive in liquidity management. It ensured surplus banking system liquidity in FY26 (~INR 1.8 trillion as against flattish in prior year).

Fiscal Policy: FY26 fiscal deficit came in line with Budget estimate at 4.4% of GDP. This was despite shortfall in tax collection and downward revision in FY26 nominal GDP number. Improvement in the fiscal deficit was achieved through curtailing the expenditure (revenue & capex). The FY27 Union Budget indicated adherence to the FY26 fiscal deficit estimate of 4.4% of GDP. Further, for FY27, the government has budgeted marginally lower fiscal deficit at 4.3%, aided by - compression of revenue expenditure and conservative tax growth assumptions, while keeping capital expenditure as % of GDP intact. From FY27 onwards, the government has shifted to the medium-term glide path for fiscal consolidation (FY27-FY31) - targeting Debt/GDP ratio versus annual fiscal deficit as % of GDP. Accordingly, the government is targeting Debt/GDP ratio of 55.6% in FY27 (FY26: 56.1%).

External Sector: The Current Account Deficit in FY26 is expected to have increased to ~0.9%-1.0% as against 0.7% of GDP in FY25. Trade deficit has increased to record levels on delayed US trade deals and high tariff rates. That said, robust net services surplus and buoyant NRI remittances are likely to be Current Account supportive. Further, capital outflows due to risk averse global environment are likely to result in Balance of Payments being negative for second consecutive year.

Outlook: The Iran war, which started in March 2026, is likely to impact the economic outlook. The war has already impacted crude prices, resulted in FPI outflows and sharp depreciation of INR. Despite the continued uncertainty related to the Strait of Hormuz, it is likely to impact macro stability thereby increasing downside risk to growth and upside risk to inflation; adversely impact external balances (both current account and capital account) and continuing to put pressure on currency. That said, proactive measures by policy makers (fiscal and monetary) are likely to cushion the impact of war on growth and inflation. Going forward, Indias economic outlook is likely to be influenced by evolving geo-political conditions, weather conditions, pass- through of rate cut cycle and structural reforms.

MUTUAL FUND SECTOR

Industry Overview

The Mutual Fund Industry has been witnessing robust growth. Over the last 10 years (FY16-26), the Assets Under Management (AUM) of the industry grew at a CAGR of 20% and stood at INR 81.5 Lakh Crore as of March 2026. This rate of growth is a result of various factors including Indias high nominal GDP growth, increased financialization with investors choosing financial assets over physical assets, improved awareness levels through campaigns such as Mutual Funds Sahi Hai, the credibility of products with high transparency, liquidity, diversification, and professional management, and the digitalization of investments.

In FY26, the Industry had another strong year. Despite the market correction in Q4 FY26, Industry AUM recorded a growth of 21% YoY. ETFs witnessed the highest growth among the various asset classes, with a growth of 40% YoY (with a significant increase in mix of commodity ETFs), while Equity AUM grew 21% YoY. Equity remained the largest asset class, accounting for 56% of the AUM. The Equity category (excluding index funds and arbitrage funds) witnessed a gross inflow of INR 10.06 Lakh Crore (+1% YoY) and a net inflow of INR 4.57 Lakh Crore (-6% YoY) in FY26. Highest net inflows were witnessed across Flexi Cap funds, Multi Asset Allocation funds and Small & Mid Cap funds, while Large & Mid Cap funds, Multi Cap funds and Large Cap funds also witnessed strong flows. There was a marked reduction in net inflows into Sectoral/Thematic funds on a YoY basis. Monthly SIP flows touched INR 32,087 Crore in March 2026 - an all-time high (up 24% YoY), while SIP AUM at INR 15.11 Lakh Crore grew by 13% in the year. The Fixed Income category i.e. (debt + liquid), witnessed a net inflow of INR 22k Crore in FY26, lower than the net inflow of INR 1.37 Lakh Crore in FY25. The ETF category had a net inflow of INR 1.8 Lakh Crore in FY26, far higher than the inflow of INR 83k Crore witnessed in FY25.

Equity markets in FY26 faced significant headwinds as compared with the prior year. The NIFTY and the NIFTY Small Cap index moved down by ~5% YoY, while the NIFTY Mid Cap index fared relatively better - moving up by ~2% YoY. Precious metals had a strong year, with gold and silver prices increasing by >60% and >125% respectively. The RBI cut the repo-rate by 100 bps to 5.25%, while the 10 Year G-Sec yield increased by 45 bps YoY to 7.04%.

Participation From Individual Investors

Individual investor participation continued to be robust. The number of unique MF investors increased from 5.42 Crore in FY25 to 6.14 Crore in FY26 i.e., a growth of 13% YoY. The industry also added 3.94 Crore folios in the year to reach a total of 27.39 Crore folios, as compared to 5.67 Crore folio addition in the previous year. The interest in ETFs continued to be strong with an addition of 1.33 Crore folios vs. 0.82 Crore folios in the prior year.

Equity

A high-risk fund that invests primarily in equity securities with the goal of capital appreciation over the medium to long term. The returns are linked to the performance of the capital markets. There are different types of equity funds - diversified funds, sector-specific funds, and index- based funds. In addition to equity funds, balanced/hybrid funds invest both in equity and debt instruments and strive to provide growth as well as regular income. Equity AUM contributed 56% to the total industry assets and saw a 21% increase in the year. Arbitrage AUM contributed 4% to the total industry assets and saw a 35% increase in the year.

Debt Funds

Debt Funds/Fixed Income Funds invest predominantly in debt and money market instruments, i.e., corporate bonds, debentures, Government Securities, Certificates of Deposits, Commercial Papers, etc. Debt AUM made up 17% of total industry assets and increased by 13% in the year.

Liquid Funds

Also known as Money Market Funds, these funds invest in highly liquid money market instruments and provide easy liquidity. Liquid funds are short-tenure investments and are typically used by corporate houses, institutional investors, and high net worth individuals to deploy surplus liquidity. Liquid AUM contributed 9% to total industry assets and saw an increase of 6% YoY.

ETF

Exchange Traded Funds track an index, a commodity, or a basket of assets as closely as possible but trade like shares on the stock exchanges. ETF AUM contributed 14% to total industry assets and grew by 40% YoY.

Top 10 AMCs AUM Trends

The Indian MF industry has ~50 AMCs and that include private sector companies, joint ventures with Foreign entities and NBFC/bank-sponsored AMCs.

The industry remains largely consolidated in the top 10 AMCs, which managed INR 62.2 Lakh Crore as of Q4 FY26, which accounted for ~76% of the industry AUM.

Geographic Mix

Historically, AUM has been concentrated in the Top 30 (T-30) cities due to higher presence of institutional investors. The T-30 cities held the majority of MF assets with a share of 82%, while the B-30 cities, or beyond the T-30, held 18% of the assets as of March 2026. AUM from B-30 has a higher composition of equity assets at 85% compared to T-30 cities at 54%.

Investor-wise break-up of AUM

The industrys investor base can be broadly categorized as Retail, High Net-Worth Individuals (HNI) and Institutional. In FY26, Retail and HNI segments grew by 17% and 18%, respectively, while Institutional AUM grew 21%. Institutional accounts for 40% of the industry AUM, whereas HNI AUM is at 34% and Retail AUM is at 26%. Given the higher growth being witnessed in the Retail and HNI categories in recent years, the share of Institutional AUM has decreased from 48% in March 2020 to 40% in March 2026.

Consistent Growth in SIP Inflows

Systematic Investment Plan or SIP, as it is commonly known, is an investment plan offered under Mutual Funds where a fixed amount can be invested in a scheme periodically, at fixed interval, like, once in a month.

SIP inflows remained strong through the year. Quarterly SIP flows for the industry have been on an increasing trend throughout FY26, including in Q4 when there was a sharp market correction. This indicates the mature behaviour and the long-term investment horizon of individual investors and realisation that this is a sustainable mode for wealth creation. The total gross inflows from SIPs were INR 3.50 Lakh Crore for the year which was a growth of 21% YoY. The breadth of the investor base continued to expand, with the total number of SIP accounts at 10.45 Crore as on March 31,2026. Contributing SIP folios increased by 20% YoY to 9.72 Crore for the month of March 2026. The gradual increase in participation from the retail segment, and the rising prominence of SIPs bring in a sense of stability to industry inflows.

Outlook

As per the World Economic Outlook Growth Projections by the International Monetary Fund, the Indian economy is expected to have among the highest growth rates among both developed and emerging economies in the next 2 years - FY27 and FY28. Indian economy is expected to grow at ~6.5% over the medium term after growth of ~7.6% in FY26, despite escalating geopolitical tensions - particularly the Middle-East conflict which could weigh down global growth and nudge inflation to a higher clip. As per the IMF, the Indian economys resilience is attributable to strong carryover momentum From the previous year, easing external tariff pressures and domestic demand strength. Despite the near-term global uncertainty, Indias growth outlook remains robust, backed by strong fundamentals and supported by sustained policy support.

Given the current low levels of penetration, the Indian mutual fund industry has a long growth runway ahead. Indias mutual fund penetration (AUM to GDP) is at ~20%, which is much lower than the world average of over 65%. Further, only ~4% of Indias population (i.e., ~6.1 Crore people) invests in mutual funds, which is less than half of that which directly invests in the stock markets. Further impetus is likely to emerge from Indias structural tailwinds including, high nominal GDP growth, a favourable demographic dividend, increasing formalisation and Financialisation of the economy, growing financial inclusion and higher disposable incomes and investment corpuses. The mutual fund Industry on its part continues to play its role in increasing investor awareness, providing a wide range of investor-friendly products, increasing the ease of investing, expanding distribution coverage, and cementing the perception of mutual funds as sustainable long-term wealth generators.

With advantages such as professional management, diversification, transparency, liquidity, and cost efficiency, the mutual fund industry is well positioned to capture Indias long term growth opportunities.

ALTERNATIVE INVESTMENT FUNDS

Alternative Investment Funds (AIFs) are pooled investment vehicles that collect funds from sophisticated investors (both domestic and international) to make investments in non-traditional investment assets (in accordance with a defined investment policy) for the benefit of its investors. The minimum investment amount by any investor in an AIF is INR 1 Crore.

SEBI has identified three categories of AIFs based on investments as below:

• Category I: Funds that have positive spill-over effects on the economy for which certain incentives/concessions might be considered, e.g., venture capital funds, angel funds, SME funds, social venture funds, infrastructure funds, etc.

• Category II: Predominantly includes funds that invest in unlisted securities and includes funds like PE/VC funds, Private Debt funds, etc., and represent the largest AIF category.

• Category III: Include funds that deploy diverse or complex trading strategies, including the use of debt/ leverage through investment in listed or unlisted securities, e.g., hedge funds or funds that invest with a view to earn short-term returns comprise a large part of this segment.

As of December 31, 2025, the industry has raised commitment exceeding INR 15 Lakh Crore across more than 1,700 registered AIFs. Category II AIFs dominate the industry, representing approximately 74% of commitments raised.

Over the past decade, capital commitments within the industry have exhibited a CAGR of ~50%, fuelled by the active participation of high-net-worth individuals, institutional investors, and FPIs. Furthermore, regulatory advancements, favourable tax structures, and the advent of specialized fund strategies - spanning venture capital, private equity, real estate, and credit funds - have contributed significantly to this success.

PORTFOLIO MANAGEMENT SERVICES

Portfolio Management Services (PMS) is an investment management service offered by asset management companies, brokerage houses, and wealth managers to wealthy investors, such as HNIs and institutions. It is one of the most versatile investment vehicles and is best suited for concentrated, benchmark-agnostic, bottom-up stock picking.

PMS is broadly divided into discretionary and non-discretionary/advisory. The PMS industry AUM as of April 30, 2026, was ~INR 42.36 Lakh Crore in total.

GIFT CITY

Gujarat International Financial Tec-City (GIFT City) is Indias flagship financial and IT services hub, envisioned as a world- class International Financial Services Centre (IFSC) to bring offshore financial activities onshore and position India as a global financial powerhouse. Located between Ahmedabad and Gandhinagar, it integrates cutting-edge infrastructure with regulatory efficiency to attract international investors and financial institutions.

GIFT City offers significant advantages, including tax incentives, simplified regulations under IFSCA, cost- effective fund operations, and the ability to manage both domestic and international portfolios. This strategic gateway not only enhances global competitiveness but also supports Indias vision of becoming a leading international financial hub.

COMPANY OVERVIEW

True Blue Asset Management Player

Nippon Life India Asset Management Limited (NAM India, or the Company) is one of the largest asset management companies in India, with a track record of over 30 years, and a total AUM of INR 7.73 Lakh Crore as on March 31,2026. The Company is involved in managing:

(i) Mutual funds including Exchange Traded Funds (ETFs)

(ii) Managed accounts, including Portfolio Management Services (PMS), Alternative Investment Funds (AIF), and pension funds

(iii) Offshore funds and advisory mandates

(iv) Funds via GIFT City

The Company is promoted by Nippon Life Insurance Company, one of the leading private life insurers in Japan, with assets of over JPY 119 trillion as on March 31,2026. The following table illustrates the closing AUM of the Companys respective offerings:

Mutual Fund

Nippon India Mutual Fund (NIMF) offers a well-rounded portfolio of products, i.e., Equity, Debt, Liquid as well as ETF for investors to meet varying requirements. The Company started its mutual fund operations in 1995. It constantly endeavours to launch innovative products and customer service initiatives to increase value to investors. As of Q4 FY26, the Company managed QAAUM of INR 7.25 Lakh Crore. With 3.94 Crore folios, the Company has the largest base of investors in the industry. As of March 31,2026, NIMF managed 112 schemes, of which 103 were open-ended (46 active and 57 passive).

Business Strengths

Strong Base of Retail investors and Assets

NIMF has been known for its strength in the retail segment. Over the last three decades, the Company has meticulously built its assets in this category and created long-term wealth for its retail investors. It will continue to enhance these offerings to further expand its investor base. NIMFs retail AAUM contribution to total AAUM is amongst the highest in the industry at 27.4%. Also, the Company has the largest base of retail investors in the industry, with retail folios crossing 3.60 Crore as on March 31,2026. The Company plans to ramp up its efforts in this segment with a mix of on-ground presence in smaller locations and evolving digital assets to improve experience and to on-board new investors.

Higher Share of AUM from B-30 Locations

NIMF continues to be amongst the leaders in the Beyond Top 30 cities segment (B-30 locations). These locations have a higher share of equity assets compared to non-equity assets. This segment contributed an AUM of INR 1.43 Lakh Crore, with a share of 20.1% of total assets, which is higher than the industry average. In smaller locations, there is a need for face-to-face communication to get new investors into the MF industry. NIMF has one of the largest on-ground presences - 271 locations pan India - and we endeavour to provide an all-round interface for our online and offline investors.

Long Term and Stable Systematic (SIP and STP) Inflows

SIP and STP are among the strongest pillars of the industry, and in addition to providing long-term sustainable inflows, they also instil a savings habit among investors and ensure steady disciplined investing rather than ad-hoc investment. NIMF received INR 42,341 Crore in inflows from systematic transactions in FY26, up 17% YoY. In the month of March-2026, NIMF received INR 3,722 Crore in inflows from systematic transactions which is a recurring monthly inflow, resulting in annualised inflows of ~INR 44,700 Crore. The book is comprised of 107.8 Lakh SIP and STP folios.

Leadership Position in the Passive Category

The Company offers the most diverse range of passive products in the industry with 27 ETF schemes and 27 Index funds. Passive AUM crossed INR 2.50 Lakh Crore during the year. The ETF segment had assets of INR 2.42 Lakh Crore and has the largest volume market share in the Industry. Approximately, 52% of the exchange volumes are contributed by NIMFs ETF schemes (as of Q4 FY26). With 1.81 Crore folios, NIMF held 45% of the industrys folio market share (Q4 FY26) and added about 37 Lakh folios in FY26. There has been a consistent participation of HNI segment in passive products, indicating greater adoption by an evolved class of investors.

De-risked Distribution Model

Mutual Fund Distributors (MFDs), Foreign banks, Indian private and public sector banks, national distributors, and digital platforms make up the Companys multichannel distribution network. On March 31, 2026, the Company had more than 1,23,800 empanelled distributors in India, among the highest in the industry. NIMF is also far less reliant on the banking channel versus most other large AMCs.

Making Deeper In-roads into India

Currently, NAM India has a pan-India network of 271 locations, which is amongst the highest in the industry. The Company continues to focus on B-30 cities, as assets from smaller locations have higher persistency and are more profitable.

Managed Accounts AIF

As of March 31, 2026, Nippon India AIF has demonstrated exemplary performance, with total commitments since inception across all asset classes reaching ~INR 9,330 Crore. FY26 witnessed a record high in commitments, with fresh inflows amounting to ~INR 1,900 Crore, a ~50% growth compared to the previous year, reflecting the steadfast confidence of investors in our capabilities.

Key highlights of FY26:

• Nippon India Equity Opportunities Series (Category III AIF - Long-Only Equity)

- Successfully introduced the 11th Equity Scheme.

- Fundraising efforts were enhanced through expanded direct channels and distributor partnerships. Regular outreach via investor calls and webinars fostered strong engagement.

- Seamlessly wound up and distributed NIEO 2, 3, 4 all ahead or within liquidation timelines.

• Nippon India Digital Innovation Fund (NIDI, Category II AIF - Tech/VC)

- NIDI (FoF): Portfolio construction of NIDI Scheme 1 is complete with investment across 14 diversified funds, providing access to 400+ start-ups. The fund has made 3 successful distributions till March 31,2026.

- NIDI Scheme 2A: NIDI 2A will invest in the Winners Portfolio of NIDI 1, with the team having unique access to financial and operational data across investee companies. The first investment of the fund has been made in an omnichannel pet-care platform.

• Nippon India Credit Opportunities AIF Scheme 1

(Category II AIF - Credit)

- Successfully completed our highest-ever single fund raise with total commitments amounting to ~INR 1,155 Crore and executed 21 deals of which 9 have been fully exited, with no delay or default till date.

• Nippon India Credit Opportunities AIF Scheme 2

(Category II AIF - Credit)

- Successfully conducted 1st close of the 2nd Private Credit Scheme with the 1st capital call, the Fund is drawdown to the extent of 25%.

• Nippon India Real Estate Funds

- Seamlessly wound up and distributed Nippon India Yield Plus AIF Scheme 3 within liquidation timelines.

- Successfully launched Nippon India Yield Optimiser AIF Scheme 1. Received continued commitment from our Japanese investors for the fourth time in Real Estate Credit Funds with investments across in 2019, 2021, 2022, and now in 2025.

• Others

- AIF Closing AUM grew by ~22% YoY.

- Our continued efforts to expand expertise and resources across all functions, particularly within our investment team, further underpin our success.

Active Fundraising Initiatives:

• Nippon India Equity Opportunity AIF Scheme 10 and

11: Category III AIF - Long-Only Equity.

• Nippon India Credit Opportunities AIF Scheme 2:

Category II AIF - Private Credit.

• Nippon India Digital Innovation Fund 2A: Category II

AIF -Tech focus VC fund.

PMS

The Company provides portfolio management services to high-net-worth individuals and institutional investors. It is one of the few AMCs in India who have won and managed various prestigious government mandates. The Company continues to manage the two prestigious government mandates, i.e., Post Office Life Insurance and Rural Post Office Life Insurance. Currently, there are four equity strategies offered to investors (six strategies in total), and all investment strategies under PMS continue to outperform their benchmarks and peer groups over the long term. As on March 31, 2026, the Companys total AUM was INR 88,459 Crore, as part of the PMS and managed accounts business.

Key highlights of FY26:

• Nippon India High Yield Portfolio (Debt PMS)

- Successfully introduced the debt PMS scheme, with AUM of ~INR 475 Crore as on Feb 28, 2026.

• Nippon India REITs and InvITs Income Portfolio

- Launched REITs & InvITs PMS.

International Business

Offshore Funds and Advisory Mandates

The Company manages offshore funds and distribution through its subsidiary Nippon Life India Asset Management (Singapore) Pte. Ltd. (NAM Singapore) in

Singapore.

The overseas subsidiary helps to cater to institutional, retail, and high net worth investors across Asia (Ex-Japan), Japan, Middle East, UK, US, Latin America, and Europe. As on March 31,2026, NAM Singapore managed a total AUM of USD 1.46 Bn as part of its international offshore managed portfolio.

NAM Singapore serves the requirement of overseas retail, institutional and high-net worth investors who are keen to invest into India, by offering Equity, Fixed Income and Alternative Investment Fund offerings investing into India.

The Company also acts as an Investment Advisor for India- focused equity and fixed income funds in Japan and Korea. Further, as on March 31,2026, the Company had a total AUM of USD 178 Mn as international advisory mandates.

NAM Singapore acts as a co-investment manager for the fixed-income fund Xtrackers India Government Bond Fund, which was launched in collaboration with Xtrackers (DWS) one of the largest European AMCs.

Key highlights of FY26:

• New geographies and investors added to our distribution network in UK, Europe, Asia ex-Japan, Japan, and Latin America.

• Working together with Nissay Asset Management Corporation, Japan on both our UCITS Equity strategies, Nippon India Equity Fund and Nippon India Small & Mid Cap Equities Fund.

• Large Institutional investors like Sovereign Wealth Funds, Pension Funds, University Endowment Funds, Insurance Companies have been investing with us.

GIFT City

In an endeavour to evolve into a diversified investment manager offering products across various asset classes and delivering value to our investors, we hold the license under the category of Registered FME to set up and manage AIFs in Gujarat International Finance Tec-City (GIFT City).

Key highlights of FY26:

• We have 2 products under GIFT, namely Nippon India Large Cap Fund Gift (an open-ended, Category-III AIF

IFSCA), which is a feeder fund into Nippon India Large Cap fund, 5th largest large cap mutual fund in India and Nippon India Nifty 50 Bees GIFT (Fund) which is 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. As of March 2026, Nippon India Large Cap Fund Gift has AUM of ~USD 13 mn & Nippon India Nifty 50 Bees ETF GIFT has AUM of ~USD 25 mn.

• Preparations are underway for setting up of a Long Short Equity Fund and our second Fund of Fund VC strategy, which will invest in India-focused venture capital funds. This fund is a follow-on fund based on the success of the first fund launched in 2020 namely, Nippon India Digital Innovation AIF - Scheme 1 which was a SEBI registered CAT II AIF scheme.

OPPORTUNITIES AND THREATS

Opportunities

• Under-penetration of mutual funds in India

• Ongoing financialisation of savings in India

• Increasing per capita GDP

• Increase in investors for SIPs

• Larger allocation by informed investors towards passive products

• Rise in flows from smaller cities/towns

• A strong owned distribution network with extensive reach across India

• Deepening digital channel distribution contributing to disintermediation and de-risking of sales and distribution

• Leveraging Nippon Life Insurance Japans global network for international tie-ups and partnerships

• New frontiers of growth in emerging areas of business such as AIF and international markets

• New avenues for growth including Specialized Investment Fund and GIFT City

Threats

• Impact of possible higher inflation on household savings and corporate earnings

• Rise in the culture of direct investing may have a short- term impact on equity flows

• Intense competition amongst MFs to garner higher AUMs can lead to increase in commissions, and consequently impact revenue

• Impact of regulatory intervention on fees, charges, reduction of exit loads

• Geopolitical risks

FINANCIAL PERFORMANCE

The financial statements of the Company For the year ended March 31, 2026, have been prepared in compliance with the Companies Act, 2013 and Indian Accounting Standards, Rules 2015. The Company has adopted Indian Accounting Standards (Ind AS) - IFRS Converged Standards.

Consolidated Financial Performance Revenue

The Companys consolidated revenue from operations stood at INR 2,709 Crore compared to INR 2,231 Crore in the previous year. Other income stood at INR 224 Crore compared to INR 290 Crore in the previous year.

Expenditure

Total consolidated total expenditure for the year increased by 16%, to INR 961 Crore, as against INR 826 Crore in the previous year. Fee and Commission expenses for the year amounted to INR 78 Crore as against INR 72 Crore in the previous year - an increase of 9%. Employee benefit expenses For the year were INR 505 Crore as against INR 429 Crore in the previous year, up by 18%.

Depreciation For the year recorded a 23% increase to INR 40 Crore, as against INR 31 Crore in the previous year. Other expenses for the year were INR 330 Crore as against INR 288 Crore in the previous year - an increase of 15%. Profit For the year stood at INR 1,529 Crore as against INR 1,286 Crore in the previous year - an increase of 19%. Total Comprehensive Income for the year saw a 19% increase and stood at INR 1,526 Crore as against INR 1,282 Crore in the previous year.

Utilisation of IPO Proceeds

As part of the IPO conducted in October 2017, NAM India had raised INR 617 Crore from fresh issue of equity shares. These funds were to be utilised towards various objectives, including branch network expansion, IT infrastructure, advertising, brand building, seed investment in AIF schemes and MF schemes, and inorganic growth as well as strategic initiatives.

The Company utilised INR 399.68 Crore out of these proceeds by March 31,2026, as per the specified objectives. The amounts raised, utilised till date and pending utilisation, is detailed in Note no. 40 in the Notes to the Accounts of the Consolidated Financial statements.

Due to the dynamic and evolving nature of the industry and ever- evolving digital ecosystem, NAM India has been prudent in deploying its IPO funds. Also, the opportunities for inorganic growth and strategic initiatives have been limited. Due to the exponential surge in digital transactions after the IPO, there has been a diminishing need for rapid expansion in physical presence and opening of new branch offices. Hence, the Company continues to be vigilant with regards to branch expansion in Tier 3 and Tier 4 cities.

Given the lack of inorganic openings at a reasonable cost, which could support NAM Indias current business, the Company has been constantly evaluating multiple opportunities for potential synergies. However, no actual acquisitions have come to fruition. The Company remains open to evaluate opportunities for strategic partnerships.

Against this backdrop, NAM India will continue to explore the deployment of its IPO proceeds towards value accretive and strategic initiatives in the future. However, unless the opportunities have value-accretive potential For shareholders, add to the profitability, or complement the existing businesses, it will not take risks with the available resources. NAM India will review the strategy on the deployment of these funds in the light of these factors, without diluting the stated intent that any utilisation must have value accretion for shareholders at the forefront.

DIGITAL BUSINESS - DRIVING ACCELERATED GROWTH

Indias mutual fund industry is witnessing strong and sustained growth, Fueled by increasing financial literacy, rising disposable incomes, and a growing preference for systematic investment approaches. Enhanced digital infrastructure, cutting-edge technology solutions, and expanded distribution networks are enabling wider investor access, stronger market participation, and sustained long- term expansion across the sector.

Digital Business - The Key Growth Driver for NIMF in FY26:

At NIMF, a Focused digital-first strategy established Digital Business as the primary growth catalyst in FY26. Digital channels accounted for 77% of all new transactions, including both lump sum investments and fresh SIP registrations. Notably, 66% of new SIPs were launched digitally, reflecting investors growing preference for seamless, online investment experiences. Backed by a robust digital distribution framework and well-executed marketing campaigns, NIMF further reinforced its leadership position in Indias digital mutual fund ecosystem.

Unprecedented Digital Momentum:

NIMF recorded a remarkable rise in digital transactions, reaching 1.7 Crore (lumpsum + new SIPs combined), clearly signalling investors strong inclination toward digital modes of investing. With 48 new transactions occurring every minute, the scale reflects NIMFs agility and alignment with evolving market behaviours.

Strong Lumpsum Focus Powers Exceptional Growth in Registrations:

Lumpsum transactions witnessed significant expansion, reaching ~1.3 Cr transactions in FY26, reinforcing investor confidence in NIMF and highlighting the growing preFerence for Lumpsum investments as a favoured investment avenue.

Powering Scalable Growth through a Unified NIMF Digital Ecosystem:

Since its inception in 2018 as a marketing-supported initiative, the Digital Department at NIMF has grown into a core pillar of strength and one of the fastest-expanding business verticals. Initially focused on acquisition, lead generation, and zero-balance folios, it has now evolved into a Fully-fledged, selF-sustaining digital business.

Today, Digital functions as an integrated growth engine, powered by proprietary platforms, advanced analytics, and scalable infrastructure. Digital has become central to the organizations growth journey.

Digital plays a key role across the investor lifecycle - from acquisition and onboarding to engagement and retention - anchored in the belief that seamless, investor-first experiences create long-term value.

This transformation rests on three pillars:

• User Growth through data-led communication and personalized journeys,

• Products & Platforms delivering secure, scalable digital infrastructure, and

• Digital Distribution expanding reach through integrations with fintechs, exchanges, and distributors.

Our ecosystem includes owned platforms such as the Investor Website & App, Simply Save, Business Easy 2.0, and WhatsApp interfaces, supported by integrations with platforms like Zerodha and Groww, and infrastructure like BSE Star MF, NSE NMF, MF Central, CAMS, and KFin.

MFD Digital Engagement Strengthening Market Presence:

Active MFD participation has strengthened our digital reach through the Business Easy ecosystem, with over 20.33% contributing to this momentum, reflecting their growing adoption of digital tools. This years draft builds on last years momentum, supported by the launch of feature-wise Business Easy videos designed to drive deeper understanding and usage. This sustained engagement continues to amplify our digital presence while reinforcing our partnership-led distribution approach. With the rise of virtual engagement models, digital interactions and activations are steadily expanding, enabling stronger and more meaningful collaboration with our distribution network.

Distribute Digitally - Virtual Branches for Investors Everywhere:

Collaborating with MFDs provides us with deep insights into regional investor needs, ensuring our digital offerings remain relevant and impactful across India. Leveraging data- led campaign strategies across email, app notifications, and WhatsApp, we strengthen engagement and communication with our extensive distribution network. Our success in vernacular and regional campaigns highlights our continued commitment to inclusivity.

New age fintech partnerships targeting investors aged 25- 45 have accelerated our reach in tier 2 and tier 3 markets, enabling wider access to digital investing solutions. While digital platforms continue to evolve, the importance of human advisory stays constant - making our MFDs critical pillars of digital engagement.

At the heart of this transformation is Business Easy 2.0 - our next-generation, end-to-end digital distribution suite that delivers an integrated CRM, a virtual storefront, and seamless on-the-go servicing across mobile, web, and WhatsApp. Equipped with advanced dashboards and real-time analytics, MFDs can monitor investor behaviour, optimize strategies, execute campaigns, and enhance retention, all within a single unified ecosystem.

Enhancements for Digital Distribution:

Ongoing Partner and Internal Team Engagement & Readiness

We drive partner readiness through a structured, year- round capability-building program with regular touchpoints across external partners, RMs, call centres, and operations. This continuous learning approach enhances platform understanding, strengthens communication, and improves overall partner effectiveness.

Simplified Feature Adoption

To enable deeper product familiarity and smoother usage, we have rolled out a comprehensive suite of feature- wise Business Easy tutorials. These bite-sized explainers, including vernacular versions, simplify key functionalities, improve comprehension across partner segments, and encourage higher and more confident platform adoption

From Onboarding to Payments — Now Fully Digital

Enhancements for Investors Biometric Payments on Investor App

Biometric Payment Authorisation now allows investors to authenticate transactions instantly using fingerprint or face ID. This upgrade removes the need for repeated passwords, speeds up payments to under a few seconds, enhances security, and enables a seamless, fully digital transaction experience on the Investor App.

NRI KYC on Investor website

NRI KYC can now be completed digitally, allowing non-resident investors to complete onboarding remotely with ease. This enhancement simplifies document submission, adheres to regulatory requirements, and enables NRIs to begin investing quickly through a fully digital journey.

Future-First - Empowering Gen Z & Millennials - The New Vanguard of Investing:

As a future-first organization, NIMF continues to adapt to the evolving expectations of tomorrows investors through continuous innovation, personalization, and accessibility.

Through our core philosophy of Build, Engage & Distribute, we have launched a suite of digital initiatives designed to inspire confidence among Gen Z and Millennials. Our efforts ensure we meet the demands of todays investors while shaping the future of digital finance.

Seamless & Inclusive Digital Experiences For the Next Genera tion:

At the heart of our digital strategy lies a commitment to delivering simple, frictionless, and futuristic experiences. Our mobile-first applications are engineered for personalization, intelligent nudges, and intuitive journeys that guide investors throughout their financial lifecycle.

Recognizing the importance of multi-channel accessibility, we strengthened our ecosystem with channels like WhatsApp—allowing users to interact with us in familiar, secure, and convenient ways. Our ongoing integration of voice and vernacular experiences reflects our dedication to breaking barriers and empowering a diverse investor base to manage their financial journeys effortlessly.

Engage for User Growth - Building Meaningful, Long Term Relationships:

We are deeply committed to meaningful innovation and continuous evolution. We see our role as thoughtfully shaping the future of investor engagement in a rapidly changing landscape. We strive to stay ahead of cultural and consumer shifts, bringing fresh thinking and responsible experimentation to the industry. Every initiative we undertake is grounded in insight, backed by data, and designed with the investor at the centre.

We strongly believe that the next phase of growth for our industry will come from inclusion, bringing more of India confidently into the investment ecosystem. This means simplifying investing, localizing communication, addressing first-time barriers, and ensuring relevance across generations and geographies. We collaborate, we test and learn, and we execute with rigor, balancing creativity with accountability.

NIMF works closely with Global Partners on innovative Campaigns to set industry benchmarks and build futuristic, frictionless, and friendly investor initiatives:

Dedicated Social Presence for Gen Z:

We became the first AMC to launch a dedicated social media handle for Gen Z with InvestBae, recognizing the importance of engaging investors at the very start of their earning journey. Social media is their primary source of learning, discovery, and financial influence, making it the most authentic platform to build relevance. Through InvestBae, we created a relatable, education-led presence on Instagram and YouTube designed to nurture early investing behaviour and long-term loyalty.

Long Game Campaign:

Nostalgia is a powerful emotion, it strengthens recall, builds instant connection. With this insight, we launched the "Long Game" campaign, an innovative integration of mutual funds with some of our favourite childhood games. By blending investing with culturally loved references, we made financial conversations feel fun, relatable, and less intimidating. The campaign was designed to simplify investing for Gen Z via SIP, positioning it not as a daunting decision, but as a strategic long game they already understand. SIP investing is aimed at instilling investing discipline in the next generation.

Mom Influencer Campaigns:

Todays young mothers are financially aware, digitally savvy, and actively involved in long-term decision-making for their families. Recognizing this shift, we partnered with mom-influencers to engage young mothers in a relatable and credible way. Our communication reinforced a simple but powerful belief: #MomsCanFinance. By empowering mothers to invest confidently, we aim to drive early financial discipline for the next generation while strengthening financial independence for women today.

Employee Generated Content (EGC):

Employee Generated Content plays a key role because it brings a human perspective to financial conversations, making investing more relatable and trustworthy. We launched a series of Lumpsum centric videos which spoke about OTT (One Time Transactions) and OTT which we spend hours watching. We also launched a series of Women Centric videos making investing more authentic across age groups.

NIMF Google Case Studies:

NIMF was featured in 2 Google case studies this year, reinforcing our legacy of pioneering industry-first initiatives with innovation at the core. We were highlighted in the AI Max Search case study for leveraging AI to intelligently expand our keyword universe and unlock incremental business opportunities. Additionally, we were recognized for effectively using Googles Full Funnel Reporting to create synergy between Search and Performance Max campaigns, driving stronger, data-backed business growth.

Moving Beyond Fund-Centric Communication to Aspirational Engagement:

We shifted from fund-centric messaging to aspiration-led storytelling, positioning mutual funds as enablers of life goals through campaigns like Jet, Set, Invest and the Dream Series. Delivered via a 360? omnichannel strategy

- Email, App, Website, WhatsApp, and Paid Media-these journeys used innovations like real-time market triggers, AMP interactive emails, and deep-linked experiences to create consistent, immersive, and action-oriented investor engagement while strengthening brand affinity.

SIP Focused Hyper-personalised Retention Strategy:

We led a data-driven initiative to strengthen the SIP book by proactively addressing SIP churn and driving win-backs through highly targeted lifecycle campaigns. Built hyper-personalised investor communications basis NAV movements, portfolio performance, to re-engage investors, restore discontinued SIPs, and reinforce long-term investing discipline. This resulted in improved SIP continuity, higher retention, and stronger investor lifetime value.

Strengthening Digital Adoption Through WhatsApp & App Push:

As part of our digital acceleration strategy, we position WhatsApp as a dynamic platform for both thematic and product-led campaigns. Initiatives such as the Travel Series and Dream Series leverage conversational storytelling to connect investing with aspirations, while fund-focused campaigns-including NFO launches, SIP drives, and flagship offerings like the Nippon India Nifty 50 Fund-utilize personalized, behaviour-driven outreach supported by app push notifications and deep-linked journeys.

AI/ML-Led Propensity Campaigns For Smarter Outreach:

To strengthen campaign effectiveness, we leveraged AI and Machine Learning-driven propensity models to launch targeted email initiatives across Large Cap Fund, Multi Cap Fund, and Consumption Fund. The Salary Day campaign strategically aligned communication with high-liquidity periods, while fund-specific campaigns were personalized based on investor behaviour and engagement patterns. This data-driven approach enabled us to deliver timely, relevant messaging and improve overall engagement outcomes.

Leading the Future of Financial Inclusion:

Through continuous innovation and a strong digital- first mindset, NAM India is shaping a more inclusive, accessible, and empowered investment environment. We remain committed to driving financial inclusion for both distributors and investors - especially Gen Z and Millennials - helping them navigate the rapidly evolving world of digital finance with confidence and ease.

Awards & Accolades Won at Prestigious Digital and e-Commerce Forums:

NIMF Digital continues to set benchmarks not only in the Indian BFSI sector, but also across Industries and on Global Platforms with its Fintech endeavours. Yet another year on the trot, our Digital prowess has been recognized once again across forums.

Global recognition followed, with 3 international case studies (CII DX and Google), validating our digital strategy. FY26 marked a step-change in scale, impact, and leadership- setting the foundation for the next phase of growth.

In FY26, NIMFs Digital innovations and efforts bagged 39+ Awards at prestigious Awards and Recognition platforms:

• 16th India Digital Awards

- Gold: Best Use of Messaging App - WhatsApp Investor and Distributor

- Gold: Data Science Technology Innovation of the Year - Portfolio Dashboard

- Gold: Best Enterprise Product or Service - Business Easy 2.0

• ET Brand Equity Martech Awards - Gold: Mobile Marketing and App Innovation - Investor App

• ACEF Asian Leaders Conference and Awards

- Gold: Best Martech Innovation - Investor App

- Gold: Best Chatbot/Conversation Marketing strategy - WhatsApp for Investor and Distributor

- Gold: Excellence in Digital Transformation - Investor App

• Finnoviti 2025 - Gold: Best Feature in BFSI - Investor App

• ET CX+ - Gold: Sector Specific CX Excellence (Marketing BFSI) - WhatsApp for Investor and Distributor

• Financial Express, FuTech Summit and Awards - Silver: Best Storytelling in Digital Campaigns - Travel Series

• CII DX Awards and Summit

- Gold: Operational Excellence - Business Easy

- Gold: Customer Excellence - Portfolio Dashboard

- Silver: service Excellence - WhatsApp for Investor and Distributor

- Gold: Most Innovative category- Travel Series- Jet, Set, Invest

• ACEF Digital Marketing & Social Media Awards

- Bronze: Best Martech Innovation - WhatsApp for Investor and Distributor

- Gold: Best Interactive/ Gamified Content - Travel Series - Spain

- Gold: BFSI (Banking, Financial Services, Insurance Excellence) - Travel Series - Jet, Set, Invest

• ACEF Asian Leaders Award 2025

- Gold- Best Interactive/Gamified Content- Travel Series (Spain)

- Gold- Best Martech Innovations

- Gold- Best Chatbot/Conversational Marketing Strategy

- Gold- Excellence in Digital Transformation

• E4M IMA South Indian Marketing Awards 2025

- Gold- New Product Launch- Financial Sector

- Silver- New Product Launch - BFSI

- Silver- Best Integrated Marketing

• ACEF Global Customer Engagement Awards - Gold:

AMP Goal Planner

• E4m Indian Marketing Awards

- Silver- Customer Experience- Portfolio Dashboard

- Silver- Gen Z Handle - Age Targeted Marketing

- Bronze- Marketing on Small Budget- travel Series

• E4M Maddies 2025

- Gold: Most effective Tech Platform - Portfolio Dashboard

- Bronze: Most Effective Tech Platform - WhatsApp for Investor and Distributor

- Silver: Most Effective Email Campaign - Travel Series

• E4M IMA South 2025

- Gold: New Product Launch BFSI - Portfolio Dashboard

- Silver: New Product Launch Financial sector - Portfolio Dashboard

• E4M IMA 2025

- Silver: Customer Experience - Portfolio Dashboard

- Silver: Age Targeted Marketing - InvestBae

- Bronze: Marketing on a Small Budget - Travel Series - Jet, Set, Invest

• E4M IDMA 2025 - Silver: Most effective use of Data &

Analytics - Portfolio Dashboard

• Martech AI (this is not E4M)

- Gold: Best Use of Martech in Channel Partner - Business Easy

- Gold: Best Omnichannel Strategy - Gen Z Acquisition and Retention Campaign

- Silver: CX transformation of the year - WhatsApp for Investor and Distributor

- Silver: Best Martech Transformation - Investor App

- Silver: AMP Goal Planner

• IDMA - Bronze: AMP Goal Planner

• Discover Martech Awards - Gold: Best Omnichannel

Strategy for Acquisition and Retention of Gen Z

• e4M DigiOne Awards - Gold: Best Omnichannel

Strategy for Acquisition and Retention of Gen Z

• Pitch Finnovate Awards

- Gold - Most Effective B2C Marketing Campaign: Acquiring Gen Z with Content Strategy at the Core

- Silver - Most Effective Mobile Marketing Campaign - App Focused Initiatives

- Bronze - Most Effective B2C Marketing Campaign - Goal Based banner

- Bronze- Most Effective Campaign- AMP Goal Planner

• ET Brand Equity Disruption Awards - Gold: Best

Customer Experience Strategy

• UBS Forums Product Management Summit & Awards

- Excellence in Product Management- Investor App

- Excellence in user experience innovation - WhatsApp for Investor and Distributor

NIMF Digital remains committed to innovation, excellence, and redefining industry standards. These strategic efforts reinforced NIMFs position as a digital-first leader driving accessibility, adoption, and long-term business growth.

HUMAN RESOURCES

At NAM India, we consider our employees as our most valued asset, who are at the core of not just the business but also in all business/organizational decisions. We are in a people business, where human capital is the most important business driver for us as well as our biggest competitive advantage. We aim to nurture an environment where change is embraced, learning is perpetual, and where each team member is empowered to contribute to our collective success.

We prioritize upskilling to not only enhance individual growth but also to contribute to wealth creation within our organization. We believe that our collective success leads to impactful social change, and we are committed to creating a positive footprint in the communities we serve. Our approach to change management is fundamental. It is not just about adapting to change; it is about leading it. Our leadership is dedicated to fostering a connective thread between our vision and everyday work, ensuring that communication remains transparent, collaboration thrives, and empowerment is felt at every level.

Long-term employee retention is the key to the organizations success. At NAM India, the average tenure of all employees is ~6 years, aided by best-in-class employee experience as well as career development and growth intervention.

We hold the unique distinction of being the only AMC with our MD & CEO and both the CIOs having a tenure of 22+ years with the Company. Of our total employees, ~20% have been with us for over 10 years, of which ~11% have been with us for over 15 years.

Rewards & Compensation

Following a prudent, and fair compensation practice has always been the core driving principle at NAM India. We are an equal opportunity employer, both at the hiring level and through the career development and progression of our employees.

Our employees experience the idea of "total rewards" beyond just remuneration i.e., best-in-class learning, career advancement opportunities, employee recognition, superior health & well-being interventions, family connect and an all-round talent experience. We are dedicated and committed to provide a great workplace that is inclusive and "equal-for-all" in all aspects as our colleagues and customers form the core of any and every business decision.

Learning & Development

Being an "employer of choice," the Company provides to its employees a holistic, comprehensive competitive, concurrent learning, upskilling, and developmental environment. In the modern competitive environment, employees need to constantly unlearn, acquire new knowledge, and upskill to have new and up-to-date skills to excel in their current and Future jobs. The focus hinges on improving efficiency, productivity, motivation as well as finding new ways towards personal development and success.

As a philosophy, learning and development is about creating and nurturing a catalytic environment while helps and supports in achieving various business objectives and benefitting all the stakeholders of the business, and most importantly, the employees. The Companys focus has always been to provide all its employees with the best learning and development opportunities in a democratic way that hinges on the 70:20:10 model of L&D.

We engage with the premier institutes like IIMs, IITs and others for Management Development Programmes for select employees. For the next-line leadership team - ~60 employees, we engaged faculty from Harvard for year-long Leadership Development Program. In FY26, our employees underwent around 20,000 man-hours of training and development interventions with an average of 17 man hours per employee of training in the year. This is in addition to the on-the-job and peer-to-peer learning and training interventions that all employees of NAM India experience. We have the unique distinction of being one of few companies wherein all new joiners, across all levels, are taken through an in-person induction programme, at the corporate office, for 3 days, giving them a real-time interaction with the leadership team and also helps build the initial cross- functional and cross- location relationship and engagements.

A learning culture is one that embeds learning into how things are done at an individual, team, and organisational level. To facilitate this, we adopt various programs to develop the following:

• Technical / Functional Skills - These initiatives are directed towards the business / function specific acumen development and have direct impact on the organization.

• Behavioural / Soft Skills - Specialized training programs to develop personal attributes that enhance an employees interactions effectively with other stakeholders internally or externally.

• Managerial / Leadership Skills - Training programs designed towards behavioural grooming of managerial level employees to manage their function and team members.

Employee Career Management - Job Rotation & Succession Planning

At NAM India, it is not just a belief and focus but also 100% advocacy and sponsorship from the leadership that believes in investing in its employees to take up challenging assignments and responsibilities to prepare and groom them for the future and larger roles in the organization. NAM India encourages employees to take up new roles and not restrict themselves to specific areas. As a part of their career and skill development, the Company offers opportunities to employees to explore diverse roles and functions. This provides employees the chance to explore and develop learning and expertise in different domains. Interventions like Big Break, CEOs Club, Internal Job Posting (IJP), location mobility, PANKH, LEAD help us drive this successfully year after year.

With robust succession planning and leadership development initiatives to identify and groom future leaders for the next level roles, we have seen much success across all areas of business. Owing to this, NAM Indias leadership is primarily homegrown, and more than 70% of our leaders have been groomed and elevated internally. The Company had a strong and robust bench of next-in-line leaders for all the key and critical leadership roles.

As part of future talent pipeline building across all important and critical verticals, we on-boarded Management Trainees (MTs) from the countrys premier management and technical institutes. These MTs have been placed in various functions and are being groomed towards taking up larger roles in the future. We plan to continue adding strength in the team via the MTs hiring mode in the coming years as well.

Employee Care & Support

At NAM India, employees play a pivotal role in the success of the Companys strategy and growth of the organisation. We believe in providing all employees with an environment that is safe, inclusive, and potent for achieving their aspirational goals, driven by meritocracy and equal opportunities for all.

We have a robust grievance management process, Internal Complaints Committee (ICC) to handle any harassment cases towards female employees, 24X7 employee assistance helpline and all these duly communicated and accessible to all employees of the Company. Over the years, these and many other formal connect and leadership outreach programmes have been providing crucial support, assistance and guidance to employees and their family members during the times of exigency.

Gender Diversity & Inclusion

The Companys philosophy of equal opportunity employment, development and career progression has led to many of our key and critical positions being held by women employees and has seen a steady increase of female employees, over the years. With a diversity ratio of 23% in FY26 (up from 20% in FY21), we remain committed to increasing the representation of women in our Company and are enthusiastic about seeing more women in leadership roles.

At NAM India, sexual harassment cases are handled as per the guidelines set under The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The Company has created awareness about the Act through mandatory e-learning at the time of induction. The Company also regularly communicates with employees regarding the mechanism for raising complaints and the need for right conduct by all employees. The policy ensures that all such complaints are handled promptly and effectively with utmost sensitivity and confidentiality and are resolved within defined timelines.

Special Initiatives for Women - Under the "PANKH" initiative:

• Women Leadership Conclave 2026

• Guest talks by women leaders form the industry

• Management Development Programs from IIMs and other premier institutes

• Health and grooming initiatives

• De-stressing activities like music therapy, etc.

Employee Connect & Engagement:

NAM India believes in creating a culture of free and open conversations. Forums of engagement have been created where employees can engage with senior leadership and seek clarification on policy and strategy. Interventions like #LeadershipReachout, Zonal HR Branch Visits, #LeadershipConnect, #CXOTownhall, Employee Offsites and smaller and regular team meetings ensure that the connect across all employee and teams are active and engaged.

At our organization, we believe that employee engagement extends far beyond the workplace. Throughout the year, we host a variety of sports activities including football, badminton, and cricket, fostering camaraderie, teamwork, and a spirit of healthy competition among employees.

In addition to sports, we actively encourage our people to showcase their creativity and talents through diverse cultural and talent events. These initiatives not only strengthen bonds across teams but also create a vibrant and inclusive environment where every individual feels valued and celebrated.

As part of our commitment to employee well-being, we actively participated in Stepathlon, a Pan India team initiative designed to encourage healthier lifestyles. Through this program, employees were motivated to adopt simple yet impactful habits such as walking more, staying active, and making mindful choices about their health.

Celebrations of key milestones for employees service anniversaries, tenure completion, festival celebrations and connecting with family members for Fathers Day, Mothers Day, Childrens Day celebrations keep the connect and spark alive. Interventions like “Young Achievers Award" enables us to celebrate the academic success of employees children, which fosters inspiration, connection, and pride, highlighting our commitment to nurturing a supportive environment for our employees and their loved ones.

DISTRIBUTOR TRAINING AND INVESTOR EDUCATION

Pioneer in Distributor Training and Skill Development

Established 18 years ago, Nippon India Edge Learning Academy has been at the forefront of training and investor education. As one of the industry-first initiatives by NIMF, it pioneered the concept of structured training for distributors and partners in the mutual fund industry in India.

Initially focused on enhancing the knowledge of distributor partners, the Academy has evolved into a comprehensive knowledge hub. Today, the Edge Learning Academy also engages end investors through financial literacy and awareness programs.

The EDGE Factor

We believe that success in the mutual fund business requires expertise across three key dimensions: Technical, Life, and Digital skills. Our customized training programs are thoughtfully designed to address these critical areas.

We offer training in domain knowledge, life skills, and the effective use of digital technology - empowering participants to enhance their business capabilities and achieve scalable growth.

Distributor Engagement Program

During FY26, the Company successfully conducted 675+ Distributor Engagement Programs, reaching over 26,800 participants across India.

Investor Education Program

The Company continues to play a vital role in promoting awareness about mutual funds through its Investor Awareness and Education initiatives. These programs are designed to educate individuals and encourage wider participation in mutual fund investments.

In FY26, the Company conducted 1,080+ Investor Awareness and Engagement Programs, reaching approximately 76,000+ investors nationwide these includes programs for women, Defence Personnel & Army Public Schools teachers. NIMF remains committed to expanding financial literacy and education across broader segments of society.

As part of SEBIs Adopt-a-District initiative, NIMF has adopted 19 districts across India. A total of 122 Investor Awareness Programs were conducted in these districts, covering 8,100+ investors.

COMPLIANCE

In the context of NAM India, compliance plays a very significant role. On the one hand, it acts as an interface between the Company and various regulators; on the other, it serves as the Companys compliance and legal conscience.

With a steadfast focus on strong compliance and robust corporate governance principles and processes, the Company remains a completely compliant corporate citizen by choice. NAM Indias compliance team keeps itself, as well as the organisation duly updated on new regulatory requirements and developments. For many years now, the Compliance team has concentrated on imparting training and spreading awareness on various aspects that are relevant to the organisation. As a part of its periodic training initiatives, the Compliance team engages with employees to educate, sensitise, and educate them about their obligations under the Companys codes/policies. Further, there are set guidelines and dedicated policy in place to regulate personal investment transactions of employees and that of their relatives/ dependants.

The Companys management is not only committed but has always been fully geared up to comply with the applicable laws in letter and spirit and strictly follow the ethical principles that govern business. Being fully aware of the stated regulatory requirements, the Company strives to remain ahead of the curve when it comes to compliance and governance. The interests of its unitholders, shareholders, and other relevant stakeholders are always at the forefront while taking decisions regarding business planning and execution.

The Board of Directors of the Company as well as that of the Trustee company also have a strong sense and flair towards compliance and governance standards. The Board periodically reviews and approves the various policies and processes of compliance, which form an integral part of the organisational DNA. Matters of compliance and governance are given undivided and focused attention at the meetings of the Board. In addition to this, the Company continues to improve its underlying policies, documentation, and internal processes through a seasoned and experienced in-house Compliance Team leveraging the expertise & guidance of the Board of Directors.

We strongly believe that a world-class ethics and compliance program not only protects an organisation from internal and external threats but also enhances its brand and strengthens its relationships with all stakeholders.

RISKS

NAM India is exposed to specific risks that are particular to its businesses and the environment in which it operates, including credit risk, operational risk, competition risk, regulatory risk, human resource risk, outsourcing risk, information security risk, cyber security risk, geopolitical and macro-economic risk.

Competition risk

The financial sector industry is becoming increasingly competitive, and the Companys growth will depend on its ability to keep up with competition effectively. The Companys main competitors are Domestic Mutual Funds, Portfolio Management Services, Alternate Investment Funds, investment products offered by insurance companies, investment products offered by fintech players, savings schemes operated by Government as well as bank Fixed Deposits. With its strong brand image, wide distribution network, diversified product offering, strong risk management capabilities, and quality management, the Company has a strong competitive advantage.

Market risk

The Company has quoted and unquoted investments in equity, debt, and mutual funds, all of which are exposed to fluctuations in the prices of underlying assets. The portfolios are reviewed for market risks on a periodic basis. The Company also applies stress-testing to the portfolio monitor to manage the market risks.

Credit Risk

The Company has quoted and unquoted investments in bonds and debt-oriented mutual funds. Therefore, there is a risk of default or failure on the part of borrowers in meeting their financial obligations towards repayment of principal and interest. Hence, credit risk is a loss because of non-recovery of funds both on principal and interest counts. This risk is addressed through diversification, by spreading investments into multiple bonds and mutual funds across multiple issuers.

Liquidity and Interest Rate Risk

The Company is exposed to liquidity risk principally due to the investments for periods that may differ from those of its funding sources. However, this risk is mitigated as all the investments are made though accumulated surpluses and equity infusion.

The Company has quoted and unquoted investments in bonds and debt-oriented mutual funds, thus the risk arising out of interest rate movements exists. This risk is comprehensively addressed by duration management across the portfolio.

Human Resource Risk

The Companys success depends largely upon the quality and competence of its management team and key personnel. Attracting and retaining talented professionals is therefore a key element of the Companys strategy and a significant source of competitive advantage. While the Company has a salary and incentive structure designed to encourage employee retention, a failure to attract and retain talented professionals, or the resignation or loss of key management personnel, may impact the Companys business and its future financial performance.

Operational Risk

The Company may encounter operational and control difficulties when venturing into new markets. In new markets, the rapid development and establishment of financial services businesses may pose unexpected risks. Such risks could have a materially adverse effect on the Companys financial position and the results of its operations.

The Companys operations have been automated to a great extent, which minimises the risk arising out of human errors and omissions. A robust system of internal controls is adhered to by NAM India, which ensures all its assets are safeguarded and protected against loss from unauthorised use or disposition, and all its transactions are authorized, recorded, and reported accurately.

The Company conducts Risk and Control Self-Assessment (RCSA) periodically, whereby all potential risks are identified, and mitigating controls are put into place.

The Audit Committee of Board reviews the adequacy of the internal controls regularly. The Company is focused on quality parameters and has a dedicated quality team to proactively identify and address operational issues. The mandate of the quality team is also to work closely with various business teams to achieve operational efficiencies and effectiveness through Six Sigma initiatives.

Information and Cyber Security Risk

Cyber risk as a threat has increased dramatically across the world. NAM India has robust cyber security risk management and resilience policies and frameworks to manage and mitigate this threat. We have strict security protocols and procedures in place, and all systems are monitored round the clock. Safety and security of our systems and processes are of paramount importance to us, and we constantly monitor and are vigilant in our efforts to combat any potential threats.

The Company also has information Security Risk monitoring systems and tools to protect sensitive customer data and guard against potential leaks. To manage these risks, the Board of Directors have constituted a Technology Committee that comprises experts proficient in technology to oversee and review the information security and cyber security aspects on a regular basis. Robust governance, controls, and sophisticated technology is adopted across lines of business to ward off cyber threats and protect information. Information security has been brought under the Enterprise Risk Management Framework to enhance data protection, thereby making the overall Risk, Control and Governance framework more resilient.

Regulatory Risk

As an entity in the financial services sector, the Company is subject to regulations by Indian governmental authorities, including the Securities and Exchange Board of India. The laws and regulations impose numerous requirements on the Company, and any future changes in the regulatory system or in the enforcement of these regulations could have adverse effects on the Companys performance.

Outsourcing Risk

The Company has outsourced certain activities that are non- core in nature. This has been done to provide better services to clients and provide the benefit of lower transaction costs to them. Outsourcing does not diminish or eliminate the Companys obligations to customers and regulators. The Company performs a thorough evaluation and due diligence on the partners before outsourcing critical services and thereafter on a periodic basis.

Pandemic risk

The Company maintains a Business Continuity Policy that enables remote working for employees, should the need arise in case of pandemic or any other such situation. The necessary technology tools to facilitate the same, and internal controls to manage the risks, are in place.

INTERNALCONTROLS

The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguarding of assets, the reliability of financial controls, and compliance with applicable laws and regulations.

The organisation is well structured, and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to the laws and regulations.

The Company has put in place systems to ensure that assets are safeguarded against loss from unauthorised use or disposition and that transactions are authorised, recorded, and reported. There is also an exhaustive budgetary control system in place to monitor all expenditures against approved budgets on an ongoing basis.

The Company uses information technology extensively in its operations. It ensures effective controls besides economy and helps the Company providing accurate MIS and prompt information/services to its customers and other stakeholders. The Company has implemented enhanced level of Information System Security controls with monitoring systems to address technology risks.

The Companys internal audit function is dedicated to assessing the suitability of policies, plans, regulations, and statutory requirements. Furthermore, audits follow a risk- based approach. Internal audit also evaluates and suggests improvement in effectiveness of risk management, control, and governance process. The Audit Committee of Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken.

CORPORATE SOCIAL RESPONSIBILITY

The Company continues to shape its strategy and action towards creating a long-term impact in the community. Through CSR initiatives, the Company has been facilitating diverse interventions to encourage the socio-economic upliftment of marginalised and vulnerable communities across India.

We adopt a multi-stakeholder approach covering social, environmental, and economic aspects. Our thematic areas are aligned with the activities mentioned in the Schedule VII (Companies Act 2013). This year the Company adopted a strategic approach to place its interventions on an outcome- based approach. The Companys CSR efforts will broadly revolve around the three pillars of People, Community and Environment, in line with the approach adopted by the parent company, Nippon Life Insurance, Japan. Some of the activities covered are promoting education, ensuring environmental sustainability, and promoting livelihood enhancement initiatives, support to armed forces veterans and training to athletes and para-athletes while promoting sports.

The Company contributed INR 23.30 Crore in FY26, inter- alia, through non-profit organizations engaged in the areas of healthcare, education, promotion of sports, rural development, and environmental sustainability.

Access to the Healthcare Facility and Treatment

In collaboration with Vision Foundation of India, the Company has supported eye surgeries for senior citizens and individuals from socio-economically weaker sections of society. People from the rural belts of Maharashtra, West Bengal, Rajasthan, Punjab, Chhattisgarh, Madhya Pradesh,

Odisha, Gujarat, Bihar, Karnataka, and Jharkhand have benefitted.

In collaboration with the Adjutant Generals Branch of the Indian Army, through the Army Welfare CSR Fund, support has been provided for the detection, diagnosis and treatment of birth defects and developmental delays among children of the armed forces. These Early Intervention Centres (EICs) are supported in Pune, Secunderabad, Jammu, Jalandhar, Kolkata, and Jaipur.

Through the Tata Memorial Centre - Advanced Centre for Treatment, Research and Education in Cancer (ACTREC) in Navi Mumbai, focused support will be provided towards the development and operationalisation of the eighth floor of the upcoming Adult and Pediatric Hematolymphoid Cancer Centre at their Kharghar campus. The new facility will expand dedicated bed capacity, reduce waiting times, and enable the delivery of comprehensive, high-quality, and affordable blood cancer care for pediatric patients.

Supporting Education

In collaboration with Ekam Foundation, the Company supported access to quality education for children from economically disadvantaged backgrounds. The initiative provided scholarship support to school students, junior college students and nursing students across Assam, Delhi, Maharashtra, Madhya Pradesh, Punjab, Telangana, and Tamil Nadu. In addition, the program strengthened educational infrastructure through digitisation of classrooms in Maharashtra and Uttarakhand.

Support towards Sports

In collaboration with the Foundation for Promotion of Sports and Games, we offered our support to Indian athletes and para-athletes through sports science, equipment, and coaching support. The support provided enables the athletes to participate at both national as well as international levels. The training centres are located across the country to facilitate training and to provide the desired support to our sportspersons.

Environmental Sustainability and Need-based Livelihood Opportunities

With the effects of climate change becoming evident year on year, we understand the importance of maintaining and increasing the green cover, promoting sustainable solutions, and advancing biodiversity through nature- based approaches. To accomplish the same, we had collaborated with the Aga Khan Agency for Habitat India for implementation of ecosystem-based projects in Goa and Gujarat. This initiative is designed to strengthen coastal ecosystems by expanding green cover and improving biodiversity through mangrove plantations.

The Company, in collaboration with Swades Foundation and Aga Khan Agency for Habitat India, supported rural communities in Maharashtra and Telangana to mitigate water scarcity and build long-term resilience. The program adopted a holistic approach, integrating water infrastructure development and conservation measures with strengthening of community institutions, including water user groups. It further promoted sustainable livelihood opportunities such as goat rearing, orchard cultivation, and skill development to improve household incomes while reinforcing efficient water use and community ownership. A similar initiative is planned with Peoples Action for National Integration Foundation to address the water scarcity challenge in Uttar Pradesh.