Ladies and gentlemen, good day and welcome to Nippon Life India Asset Management Limited earnings conference call for 2Q FY 2023, hosted by Emkay Equities. As a reminder, all participant lines will be in a listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Chugani from Emkay Equities. Thank you, and over to you, sir. Yeah, thank you, Naveen. Good evening, everyone. On behalf of Emkay Equities, I welcome all to Nippon Life India Asset Management 2Q FY23 earnings conference call. We have along with us, Mr. Sundeep Sikka, Executive Director & CEO, along with the top management team of Nippon Life India Asset Management. I would like to hand Over to Mr. Sikka for his opening remarks. Over to you, sir. Thank you, Naveen. I think good evening, everyone, and welcome to our Q2 FY 2023 earnings conference call. We have with us our Chief Financial Officer, Prateek Jain, Chief Business Officers, Saugata Chatterjee and Aashwin Dugal, Chief Digital Officer, Arpanarghya Saha, and Takayuki Fujii, representative from Nippon Life. Our detailed investor presentation and press release have been uploaded on the exchanges as well as our website. Before we take your questions, let me share some comments on the recent industry trends and our quarterly performance. In Q2, equity markets rebound from the lows of June 2022. However, it ended on a volatile note into the ongoing geopolitical concerns, global inflation trends, and weaker INR to USD movement. Despite the mixed overall outlook, the total asset management industry maintained its growth momentum driven by higher retail awareness. The industry assets rose by 3% in this quarter, mainly driven by higher equity and ETF assets. However, as we look back, the industry assets have seen 4x growth in last 10 years. Yet, we believe the significant growth potential still remains underlying. Currently, less than 3% of the population invest in mutual funds. In the last 24 months alone, the base of unique investors grew to 36 million, an increase of 69%. Monthly SIP flows touched an all-time high of INR 130 billion, an increase of 67%, while SIP folios increased to 58 million, a rise of 75%. The growth in investor base and consistently higher SIP flows mainly indicate investors' preference for mutual funds to achieve their long-term goals. Formalization of the economy, digitalization, and higher share of mutual fund in household savings are expected to be the key drivers for the growth of industry going forward. At Nippon India Mutual Fund, our priority is to be future ready and capture this long-term opportunity. In Q2, our industry ranking moved to fourth position on quarterly average AUM basis. AUM increased by 7% to INR 1,851 billion. At Nippon India Mutual Fund, investors' interest remains firmly constant. We added 1.6 million folios in H1 and continue to have the largest base in mutual fund industry. Our share of industry's unique investors was stable at 37% with a base of more than 13 million investors. Systematic flows are a stable and a key driver for industry's ongoing equity flows. Nippon India Mutual Fund annualized systematic transaction books is at INR 108 billion. Quarterly flows increased by 36% to INR 26 billion. On a gross basis, over 481,000 systematic folios were added in Q2. Our systematic AUM rose by 11% to INR 5,555 billion. 53% of our SIP AUM are continued for over five years vis-à-vis 22% for the industry. In volatile markets, folios with lower ticket size have demonstrated longer vintage and better stickiness. 14% of our SIP folios have continued for more than five years as against an average industry average of 10%. Today, Nippon India Mutual Fund offers industry best yields in passive category also. With strong growth in industry passive assets, our ETF ecosystem is already in place and far ahead of peers in terms of investors, investor base and market share. In this segment, we manage an AUM of INR 638 billion and have a market share of 14%. Excluding the ETF flow allocation which goes to two specific AMCs, we would be the largest ETF player in the country. The gold ETF is the biggest fund in the category with INR 66 billion in assets under management. Our share in industry ETF folios rose to 60%. In Q2, we added 108 thousand investors and accounted for 92% of the total industry ETF additions. We have 71% share of ETF volumes on NSE and BSE. Our ETF average daily volumes across key funds remain far higher than the rest of the industry. Our digital-centric strategy is also one of the keystones of our long-term growth and sustainability. We continue to enable new age and experienced investors, as well as our partners with a cutting-edge digital solution. In Q2, digital platforms contributed to 56% of our total new purchase transactions. Over 763,000 purchases were executed through our digital assets, an increase of 4%. Nippon India Mutual Fund has a well-diversified and nimble distribution base and a wide presence through 275 locations across the country. As in September 2022, we have over 87,200 distributors empaneled with us. The MFD base rose to 87,000 with addition of nearly 1,700 distributors in this quarter. Now on the financial performance. For this quarter ended September 30, 2022, profit after tax was INR 2.1 billion, an increase of 81% year-on-year Q1 FY23. Operating profit was at INR 1.9 million. Operating profit as a ratio of business under management was 26 basis points in Q2 FY23 as compared to 25 basis points in Q1 FY23. In the past, company has followed consistent dividend policy. In 2022, NAM India distributed its highest ever dividend with a payout ratio 96%. Over the last eight financial years, NAM India has distributed a cumulative dividend of INR 34 billion. In today's meeting, Board has approved an interim dividend of INR 4 per share. As we grow organically through physical and online channels, we remain open to evaluate investments in strategic opportunities that add to the profitability or complement our existing business and ultimately are in interest of minority shareholders. As a signature to UNPRI, we have already begun to integrate ESG steps into our area of strategy, business operations, investment management and wellness. We have chosen to prioritize issues such as climate action, diversity, inclusion, corporate governance, data ethics, and responsible investment for immediate strategy formulation, execution, and disclosure purpose. Through a combination of responsible investment approaches of screening ESG integration and active ownership, we aim to build a resilient portfolio that will not only provide sustainable returns to our investors, but will also provide a positive environment and social impact. To sum up, I would like to reiterate, at NAM India, investor centricity remains a key theme. We strive to deliver a superior experience and sustainable returns to our investors and in the process, add value to all our stakeholders. We are confident to continue our trend of profitable growth in coming quarters. With these comments, we are happy to take your questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Kunal Thanvi from Banyan Tree Advisors Private Limited. Please go ahead. Hi, thanks for the opportunity. I have two questions. First was on the debt side of the business. We heard the entire industry and even for NAM India, debt has been de-growing for last two quarters. Wanted to understand, you know, what's happening there. Is it due to performance or is it because shift from active debt to passive debt? What are the factors that are driving the decline in the debt AUM for the industry and NAM India? Secondly, we can see essentially our realizations have improved on overall basis, right? And that has resulted in to, you know, improvement in our core operating fees as well. Also, can you throw some light, you know, what are the factors that help us improve the realization? Like is it that the competition is easing out or the distribution margins are, you know, softening up or it is just one quarter wherein we saw higher share of equity and the realizations improved? Yeah, these are my two questions. I think I'll request my colleague, Aashwin Dugal, the Chief Business Officer, to take the first question, and then after that I'll request Prateek Jain to take the second question. Thanks for your question. As per your question regarding the debt flows that have reduced, first at the industry level, and that is quite evident because of the overall deteriorating macros, whereas you know, the central bank action worldwide and also being followed by the central bank in India. Which is to increase interest rates and the yields across the curve, you know, both the short-term and long-term have gone up quite substantially, especially at the shorter end. Hence, we have seen outflows from you know, the debt funds into overnight and liquid schemes. If you see the trend, you would see that you know, in the last six months, our debt funds have lost money. Money has come back into either overnight funds or liquid funds. At NAM India, there has been a marginal decline, yes. Mainly because our growth over the last two years was on the back of, you know, fixed income flows and partially from corporates. We have seen one or two institutional investors who exited for the time being, who had a higher share with us. From the industry as well, we had a slightly higher share, and we've seen some different share from us. Realization, Prateek, you want to take that one? Yeah. Hi, Kunal. In terms of realization, you know, there are mixed factors. It is not one-off. I think we have been maintaining that. Look, it would be hovering around, you know, these levels, you know, unless there is a drastic change in the, what you call it, the asset mix. Here, I think two or three things played out for the quarter. One, you know, we have actually, you know, we had a better share of equity, that was one. Secondly, in terms of, you know, flows and in terms of our, fixed income, realization, you know, there has been a marginal increase out there. We have mentioned in the past as well, as the yield keeps growing in the fixed income scheme. You know, you know, dissect this from the fact that the assets are going out, but more importantly, yields in these fixed income schemes are going up. As the yields goes up, you know, in these categories, you know, our propensity to charge slightly higher improves. We have rationalized some of our TERs into the debt schemes, and we have been able to improve our realization out there. Besides, you know, on the ETF side, you know, we have seen slight improvement in the realization, you know, marginally due to some regulatory interventions, you know, requiring only one business day to be cash side and all for the industry education. These are the couple of factors, which are, I would say these are not one-off, but these are sustainable ones, which has helped us in this quarter to improve our realization. Sure, sure. Got it. Like, Sundeep Sikka, we've been suggesting that over medium to long term, the realization should keep on tapering out because of the new assets coming in. That continues to be the case, right? That's right. You know, so as and when, you know, we'll see, as the old asset kitty versus the new asset kitty, you know, the change happens, then obviously we'll see some decline. As I mentioned, you know, in this call, that look, as you see money coming into the fixed income, you know, assets, you know, and the realization at the elevated level as what we are seeing right now, you know, our propensity to charge higher and also when the cycle will turn, you know, when you'll see, you know, our returns which is in the range, you know, 8.5%-9%, at that point of time, you know, our propensity to charge will be even higher. We would already. We'll have the AUMs in place because money would have moved into these categories, which has gone out now. Also the yield will be higher. Therefore, we will get the double impact. I'm sure that will be able to offset, you know, the realization hit in the equity assets. Sure. Got it. Now, just one more question if I can squeeze in. If you look at our asset mix and our market share mix, over, you know, last 2-3 years, what we've seen is that we, like, on a overall basis, the market share is quite stable now, like between 10.2% to sometimes 10%. But within that, segments like equity and debt has, like, not gained market share or have been, you know, losing market share. For example, in debt, we, like, gained some market share last year, and now we are again losing it back. But two segments where we've been gaining market share are liquid and others, like, that's where, you know, we've gained market share and we continue to gain there. Now from a, you know, overall profitability business perspective, these are low-yielding assets. Now, you know, like, how do we look at this, you know, from a longer-term perspective? Because this will mean, like, increasing market share in the categories which are, you know, lower yielding will drive us into, of course, lower profitability for us. Well, the way I see it is I think I would not have to read too much into the fixed income. I think that's more because of overall environment. We have seen investors, you know, changing to shorter end of the curve, and this will keep happening. I don't see any loss because I think this is all functional. You know, I think liquid, short term, long term, you know, so investors will keep switching across different sectors, you know. I'm not too worried about that, you know. I think as far as the equity is concerned, clearly, I think from our perspective, the green shoots are already there. Yes, I think as you're aware, we had a certain challenge in equity a couple of years back. At this point of time, you know, the majority of our funds, you know, if you were to see, on one-year perspective are in the quartile one or quartile two. I think we are just, you know, almost in some of our funds are already a three-year basis also. Four of them bases are moving to the quartile one. The fact that the increase in SIP numbers tells you that I think the new investor, the flows have already started coming to equity. Maybe a couple of quarters down the line, I think you'll start also seeing the lag effect of this positive, you know, activity that is happening on ground and the equity market share also should move up. Sure. Sure. Thank you. No, I think that's it. Question is from the line of Lalit Deo from Equirus Securities. Please go ahead. Yeah. Good evening, sir. Thank you for the opportunity. Sir, my question was on the distribution side. Like if you see the banking channel, like approximately about like one year ago, the share of AUM which was coming through the bank channel was about 10%. However, it has declined to about like 8.5% between 7% in this quarter. Now, with majority of our schemes now performing back to Q1 or Q2, quarter one and quarter two. What is like the outlook over there and like how is the response you are getting from the banking channel? you know, from our perspective, you know, banks any which way for us were about 9% in overall scheme of things. If I take the banks out, it was about 18-20%. you know from our perspective, even if they decline, you know, it doesn't really means much for us. You know, however, you know, I'll ask Saugata Chatterjee, you know, to talk about how he sees you know, flows going forward. In case of the banking channel, what was our handicap earlier was we had the approvals like we did mention now since the equity performance has come back. Good part is that in most of the channels and the banks, we have the approvals in place. The approvals are now getting converted into business volume for us from the equity side. We have a bit of catch up on the debt side in some of the banks. Most of the banks if you see are either equity players or FI players, where the approvals which have come in in the last two or three quarters are going to help us. We have now majority of our schemes are approved in most of the retail and the wealth banks. The numbers will start reflecting as we go ahead because you know equity comes with a lag. FI numbers have started coming in. The net sales is improving. Hopefully this, you know, this ratio will start improving in the next two quarters from here on. Sure. Yes, we start with you. Thank you. Thank you. The next question is from the line of Rahil Shah from Motilal Oswal Financial Services. Please go ahead. Hi, this is Prayesh again. Just three questions. Firstly, if you look at how the redemptions have shaped up on the equity side for the industry, those have been kind of, you know, increasing in the last couple of months. Any early trends to the gaps there as to, you know, there is some profit taking or some issues out there where there are increased redemptions? Secondly, on the fee and commission expenses, we've seen an increase. What is that pertaining to? Thirdly, from an other income perspective, do you think that, you know, the current run rate that you, what you have achieved in this quarter, given if the yields remain, where they are and possibly even the, you know, equity market kind of sees steady returns, do you see these kind of other incomes sustainable? Those are my three questions, sir. If you could take the second one, sir. Fees and commissions and other than that redemption. Yeah. I mentioned in the past that these fees and commission expenses are pertaining to our AIF and PMS businesses. In AIF we still have you know we pay upfront commissions. That's where you know if you get a larger amount of asset raise in the quarter, you'll see the marginal increase out there in terms of fees. Obviously the corresponding revenue will come with a lag effect. That is the expenses in this fee and commission side of it. In terms of realization, as I mentioned, look, this is you know these are more sustainable at this point of time. If we see the interest rate picking up from here, then lot of money will come into the fixed income category. All the money which has gone out will come back to the fixed income category from the corporates and institutional investors. They will ride on to the fact that look, when there is a interest rates goes down as part of the cycle, then there will be an higher yields will be made into these products. When there are higher yields, our propensity to charge will be higher. If you see overall on the fixed income side, two things have happened. One, if you see last 2.5 years, a lot of money has gone out from the longer duration and credit funds and come into the shorter end of the curve into liquid and other money market funds. The second part is that look, in these funds also the returns were fairly low. They are sub-5.5%. Therefore, our propensity was to charge expenses were lower. Our average yield on these products are likely to go up in the coming quarters. Prateek, just, you know, my question was more on the other income that we've reported in this quarter, whether that is sustainable given the way the yields are moving and equity market return. These are all mark to market. As shared in the past, total of the total investment or total cash flow available, 82% of those assets have been invested into our own scheme into mutual funds. You know, of that, you know, barring the seed capital investment which we made into equity, remaining are into our fixed income schemes only across the category. Obviously as the yields goes up, you know, our realization will increase from here on. You know, we do not give any kind of forward guidance on our other income. You know, there are no major assets which are into the risk categories at this point of time, which I can tell you. As far as redemptions are concerned, if you were to look at the net equity flows, you know, I think in the industry except arbitrage for the four quarters have been, you know, INR 28,000, INR 20,000, INR 23,000. I think it's broadly been the same range. Yes, I think from our perspective, I think one thing is very critical, you know, is there any early trend of redemption? Clearly whenever the market is volatile, it's the HNI investors, the bulk money which goes out moves out fast and comes in, you know, the movement is faster. That is actually the reason we focus more on granular business, retail business and HNIs, which is a lot more sticky. I think from our perspective, I think we're not trying to not witness any kind of redemption at this point of time. I think for us, I think the trend could be a little different from industry because our business is very, very retail. I guess just one more question there on, so you know, from a flow perspective, although you don't give any data as such what flows are. Is there a trend of increasing flow market share for Nippon India on the equity side in the last say couple of quarters? Can you at least give that indication? I think over over many last quarters, you know, I think we have seen the trend getting positive. I think if I was to look over trend line over last 36 months, you know, from net negative so we have moved to net positive. Okay. Market share has obviously been going up. Is it in line with the overall equity market share or is it lower than that? The net sales market share is inching up towards the equity market share. That is the reason why you'll find month-on-month our equity market share is also now improving. All right. Thank you so much. Thank you. Ladies and gentlemen, if you wish to ask any questions, please enter star and one. Participants to ask a question at this moment, you may enter star and one. Next question is from the line of Manjit Dhuravia from Solidarity Investment. Please go ahead. Thank you for taking my question. I wanted to understand as the competitive intensity in the industry goes up and, you know, different players have to pay more commissions to the distribution partners as we have seen in some NFOs. How easy is it to claw back these commission levels so, you know, once the higher levels are given, it stays that way permanently? Manjit, I think from our perspective, the way we see, we have always been very clear that long-term business models cannot be made at any higher brokerage rates. We've been very conscious on it. I think whatever is sustainable, we would not like to do something which is not sustainable from a long-term point of view. I think from our perspective, I think we have never gone overboard and, wherein we will have to undo things later. Okay, thank you. Thank you. Next question is from the line of Ajit Khede from Tower Equity Fund. Please go ahead. Thank you, ma'am. My question is, NAM is collaborated with DWS Group to provide portfolio management and advisory services in European market for Indian government bond ETF. As far as the current situation is concerned, the recession part. What would be the upcoming plan from Nippon? Indian business is showing the stable growth as compared to the European market. That is my question. Our launch of product and with DWS is in line with our strategy to grow with our non-mutual fund business and offshore business. As we have mentioned in past, I think we closely work with Nippon Life team globally to look at opportunities where we can collaborate with the various group companies of Nippon Life. There are many more such initiatives where work is in progress. This one was launched just about a month back. I think at this point of time it is just started. I think we clearly see, I mean, there will be couple of other products which will be launched across the globe. The focus will be to get more money into India. Okay. Thank you. Thank you, sir. Thank you. The next question is from the line of Rahil Shah from Motilal Oswal. Please go ahead. Yeah. Hi, just Prayesh here again. Just thoughts on the hybrid segment. The industry has seen a lot of outflows in the past few months. Is there any particular reason for that, why that has kind of picked up in the last few months? From our side, the hybrid category, you know, prior to the volatility in the market, there was more flows coming into the, you know, the large cap, mid cap, those categories. Like you are rightly saying, last six months we are starting to see more flows in the hybrid. More so it is more as the volatility increases, you know, the trend shifts towards balanced fund, hybrid funds. We are seeing that trend happening today. I think, you know, if the volatility continues from next six to 12 months, this category will start growing. That should be a good thing for the industry because these are stable long-term assets which come in balanced funds. Okay. My question was, they were actually decreasing outflows, not inflows. No outflows in hybrids are not happening this time. In the last three months, four months, rather, the net inflow is positive. This can be due to some NFO which has come in which might lead to outflow in certain particular part of the quarter. The trend is still positive. You have to add hybrid categories include equity hybrid funds, it includes balance advantage funds. Okay. It includes asset allocation funds. The category is very large. It's not only one particular category which comes under hybrid. What are the plans for future launches with regards to, you know, all this, all these same categories? No, I think from our perspective, I think we broadly feel our portfolio is complete. I think we will not be launching any funds, you know, just to come up with new NFOs. I think where you'll see more launches will be, I think, whether it could be some thematic, international or passive. All right. Thank you so much. Thank you. Next question is from line of Sahej Mehta from HDFC Securities. Please go ahead. Oh, hi. Good evening, everyone. After this. Sorry to interrupt, sir. Can you please speak a little bit louder? Your voice is very low. Is it better now? Yeah. Better now. Hi. Good evening, everyone. Sorry for this. First of all, my three questions are, there's some improvement in the equity yields, right? Is this something structural? Is this improvement structural in nature? Can this be sustainable? Second was around, there's some dip in the staff costs, right? Any color on this? Thirdly was on your channel mix, right? There's some sharp dip in the share of banks. If you could just throw some color out there as well. I'm sorry some color out there as well. I'm sorry if you have already answered these questions. I joined the call a bit late. No, Sahej. You know, in terms of yields, you know, the overall yields, you know, is sort of slightly marginally up as compared to the previous quarter. As I explained in the call that this is predominantly because we have improved our realization on the fixed income schemes, and I've given a detailed explanation for that. You know, also our asset mix has marginally improved in terms of you know, overall, you know, longer term high yielding assets. These are pretty sustainable and you know, not one-off. Also, you know, as Sundeep was mentioning that, look, we'll keep, you know, working in terms of our, product offering, the, distribution commission, which are sustainable and, you know, will not go up, you know, overboard in terms of, you know, extending higher distribution commission for, you know, for a faster growth. So that is one. In terms of staff cost, you know, this is marginally lower, and these are related to, you know, certain, you know, provisions, et cetera. There is no, you know, structural thing which I can see happening here. With regards to the channel mix, you know, again, if I see the last few quarters, you know, it used to be in terms of overall share, you know, including the direct et cetera, it used to contribute about 10% and now they are 9%. Again, you know, there I see a very marginally decline there and that is because, you know, banks, if you see overall from an industry perspective also, the bank share have come down. Just like to add to what Prateek mentioned, is the fact that, in the last few months we've seen some bit of, you know, institutional money that, you know, from debt counters, et cetera, has been mobilized. Some of that has moved up at the investment level. But you know, the FI business and, you know, the Mm-hmm. Money continues to come in. And, uh- All right. One thing was, I mean, on the staff cost, I mean, you just saying, there's this dip sequentially. Is there some reversal in this line item? Sorry? Is there some reversal in the staff costs? No, no. See, like in the first quarter, there were certain, you know, like, incentives, et cetera, which got PLI, you know, got paid out. If you see the standalone results, there is nothing. It is due to the subsidiaries. You know, certain PLI expenses which got booked into the first quarter and, therefore there is a marginally, you know, I would say staff cost has declined. Right. In terms of the yields on the debt in the debt schemes have improved, right? Is there a change in the mix towards the credit risk funds or those ones? No. Again, I am telling you. See, what you have to understand is that, look, while assets may change, what we have done is we have gone and improved our realization by changing TR, so, which we dynamically keep evaluating. What is the return which an investor or what is the return which fund is generating? Based on that, what is the expenses, what competition is charging? What is, vis-à-vis, you know, our performance versus competition? Based on all these factors, you know, we keep evaluating what is the expense we should charge on our debt schemes. There, you know, what we've done is we have changed, you know, realization in some of our schemes which have resulted in a better realization. Now, this is not to be seen that, look, in detail it is monies are coming and all that. These are two different strategies. While money may have, but overall yields have gone up because of the underlying returns generated by the papers. Therefore, we've been able to increase our expenses. Any color on the yields, how they are shaping up on the equity side? Again, you know, we have not seen significant change out there. You know, our sharing remains pretty much the same as what we were paying earlier. Obviously, as I mentioned, that look, the more and more new money replaces the old assets, then obviously we'll see some decline. Over a period of time, we may see 2-3 basis points of decline, you know, if this money gets replaced by the new assets. Okay. The trend is still and the equity yields are still declining. That's a correct understanding, right? On the existing issue, maybe not. If the new AUM comes, you know, and the old assets category keeps going down, then obviously you will see some decline in the equity yields. For us in Q2, I mean, given that the flows in the equity schemes for the industry were a bit soft for us, how have the flows been? Did we witness net outflows or net inflows in- No, we were net positive in terms of inflows, and this was broadly in the range of our quarter one only. Any color on the market share in terms of net flows? We don't disclose those numbers. Yeah. Okay. Those will be my all questions. Thank you. Thank you. The next question is from the line of Dipanjan Ghosh from Citigroup. Please go ahead. Hi. Good evening. I have three questions from my side. One, just continuing the previous question, would you like to quantify the differential between your existing and the new business in the equity assets? My second question would be on the SIP business. If you can give some color on what is the fee distribution channel or origination channel for the SIP, is it more direct or indirect play or through the distributors? Third question, from an industry perspective, what we have witnessed is that there has been a significant amount of flows that is going into the NFO of schemes where the incumbents are already present. But the market is garnering flows again similarly because of newer AMCs that are coming in. How do you see this particular? How do you want to, you know, kind of see this from a more regional perspective, given that a lot of new AMCs are also in the pipeline? This is all from my side. Dipanjan, if you can just repeat your first question. First question was if you can, you know, just, you know, in the previous question you mentioned that, you know, the fees continue to be lower than the existing business. Would you like to kind of quantify what is the differential out there? Yeah. You know, in the past, you know, we have, again, at the cost of repeating, you know, see, on the old assets, you know, our average, you know, distribution commission paid, you know, was, you know, 50-60 basis points. However, if you see now, it is more on a TR sharing basis. Obviously, you know, for different distributors, you know, we share different amount of fees. It ranges between 55%-70% of our TR we share, or DTR, you know, we share with our distributor. That is the difference. Because in the past old assets we have paid higher upfront commission and which are no longer allowed and therefore it is gone entirely on trail. Therefore, the sharing mechanism has come in and we share almost 55%-70% to our various categories of distributors. Follow up? Yeah. No. The other question on SIP mix. The mix of business, you know, as we speak, the last say 2-3 quarters, the digital and the Fintech partners have started contributing, you know, decently to our overall mix. Right now as we speak, 60% of the business is coming from MFDs, which are primarily IFA for us. Some of the banking channel partners have started giving us money. They are giving us this. Remaining around 35%-40% is coming through the Fintech partners. That is broadly the mix of SIP flow numbers which are coming to us. What we are witnessing is we are also increasing the absolute count on a month-on-month basis. Right from a ratio point of view and as well as absolute numbers, both are seeing a growth. Both the categories are growing for us when you consider this. The third question was on NFO, right? You said you asked something on the NFO. Yes. What was that? Basically from an industry perspective, what we see is that, let's say the incumbents have particular schemes in the mid-cap, large cap, multi-cap. We see schemes, NFOs coming in from the smaller players in similar categories, but the flows are probably a bit higher than even the combined of what the incumbents are garnering in those schemes in particular months or quarters. From that standpoint, you know, given that a lot of newer AMCs have new tools in terms of things that they can introduce, but there are also new AMCs in the pipeline. How would you kind of think of opportunity now to kind of new growth in existing or larger I think broadly the way I see this is something this way. Any new or old AMC, you know, I think any new fund launched, I mean, until the time that they are adding value to the portfolio in the long run, investors will keep investing. I think any new NFO becoming whether be if there is higher brokerage or capability to pay, yeah, from a long-term point of view, that is not sustainable. I mean, ultimately these are all open-ended schemes. One can garner excess assets, you know, through an NFO. For these assets to be sticky, A is to add value to the investor from a performance point of view, and B, the more important thing is it has to be very, very granular and sticky because we have seen when the bulk money comes, you know, it goes out also at the same speed. I think from our perspective, our focus is not to get distracted with the new NFOs which are coming in the industry. I think then we'll continue focusing on our existing schemes and wherever we see any opportunity for us to launch new products which can add value to the investors, we'll do that. Otherwise, I think our focus will be only on the open-ended existing schemes. Okay. One follow-up on the second point, sir. You mentioned that almost 35%-40% of the SIPs are coming into the digital or impact platform. Could you shed some color on the quality of customers in terms of retention or average revenue or in terms of retention or maybe from a geography or age perspective, if you can shed some color on that particular portion of the SIPs which are digital? I think it would be very difficult to give. We cannot reveal, but I think we continue evolving. I think we continue to evaluate. I think whether it's coming from an offline channel, even if coming from distributors, IFAs or whether banking or FPAs, we continue to evaluate. I mean, the specifics of the assets, I think which distributors or channel we'll promote more, I think, and again, from a geography point of view, I think it will be very difficult to pinpoint, how a particular pocket, whether geographically or channel-wise it works. I think our endeavor is, I think as we mentioned earlier, I think the sticky assets are 50% of our, I think as I mentioned in my opening address also. Today, I mean, if you look at the specifics of the SIPs that we have, today the majority of our SIPs, you know, 50% of our SIPs are there for more than five years. I think that is our focus. We are using a lot of artificial intelligence and business analytics to continue both to upsell as well as continue to increase the longevity of the SIPs. Great. Thanks for the answers and all the best. Thank you. Thank you. The next question is from the line of Rahul Keshan from MultiX. Please go ahead. Yeah, thanks for the opportunity. Sir, just wanted a couple of data points. What is your current blended yield on your equity book and what is the yield on the new flows that you are getting? We don't give product-wise yields, you know, on this one. What was your second question? No, the second question was I wanted the yield on the new flows. But if you can't give specific yields, even if you can, you know, give out the differential between your current book and the new yield that will also be fine. No, I just explained to you that look, on the old assets, you know, the average distribution commission paid out would be in the range of 50- 60 basis points. You know, on the new money which we are receiving, post the change in the regulation, what we said that look, we share almost 55%-70%, you know, on average, you know, of our TRs to various distributors, you know, in different categories. Okay. This 55%-70% in terms of basis point, how much would that be? No, no. Each different scheme has a different TR. Nowadays, just from a study perspective, there is a calculation of TR. Post that we remove the scheme related expenses to arrive at distributable TR. Of the distributable TR, we share this money. Okay. Okay, fine. Thank you. That was the last question for today. On behalf of Emkay Equities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.