In conversation with Aditya Mulki, CEO, Navi AMC Ltd

Navi AMC has established itself as a tech-led disruptor in the Mutual Fund industry. How is the company using technology to enhance investor experience and operational efficiency?

Navi AMC has built its foundation around technology and simplicity. We've invested heavily in creating a seamless digital journey on the Navi app, where, for instance, investors can complete their KYC in under five minutes and start investing instantly.

Beyond simplifying transactions, we've also focused on helping investors build long-term investment habits through intuitive design, easy-to-understand product information, and soft in-app nudges that encourage disciplined investing.

Our backend operations are equally tech-driven. For example, our redemption process is fully automated through APIs, eliminating the need for manual intervention and enabling one of the fastest redemption turnaround times in the industry.
By combining technology-led convenience with deep operational automation, we are committed to delivering a frictionless investing experience while continuously enhancing efficiency and scalability.

Mutual fund penetration is still low beyond major urban centres. How is Navi AMC expanding its reach in Tier-II and Tier-III cities?

Our expansion into Tier-II and Tier-III cities is fuelled by our core belief that investing should be accessible to everyone. Navi’s digital-first, low-cost structure is perfectly suited to these markets, breaking down traditional barriers with low expense ratios and a small Rs 100 minimum investment. We deeply value the personal, trust-based relationships regional mutual fund distributors build and plan to equip our MFD partners with robust, easy-to-use digital tools and educational resources to help them service their clients efficiently.

SIP inflows are hitting record highs. Do you see any signs of fatigue, or is this becoming India’s dominant investment habit?

SIP inflows hitting record highs is a strong indicator of a structural shift in Indian household savings, moving from traditional assets like Bank deposits toward capital markets. AMFI has done a tremendous job with the ‘Mutual Fund Sahi Hai’ campaign to make mutual funds the default investment product for millions of Indians. While there may be marginal month-to-month fluctuations or temporary increases in stoppage ratios during sharp market corrections or periods of economic stress, the net SIP account additions and the total SIP flow remain structurally resilient. We also are of the view that a disciplined asset allocation strategy in the long run is what an investor should follow and not try to time the markets.

What’s your perspective on the impact of regulatory developments and expense ratio rationalisation on AMC profitability?

Navi AMC is already operating with a passive and ultra-low-cost model, so the impact is relatively less disruptive.

The mutual fund industry is witnessing rapid product innovation. How does Navi AMC ensure that innovation aligns with investor needs rather than just market trends? Is the company planning to launch any new products in the near future?

Navi AMC's innovation is driven by a philosophy of simplicity, transparency, and solving genuine investor needs. We avoid launching schemes merely to chase short-term market trends. Our focus remains on products with structural long-term relevance and clear investment rationale that align with our investment philosophy. We have a strong product pipeline to bridge our product gaps, and you can expect a few new products to be rolled out soon.

How do you assess Navi AMC’s growth trajectory so far, and what are your top priorities for scaling the business over the next few years?

Navi AMC has rapidly established itself as a leading player in the passive Index Fund space, quickly competing with larger AMCs for AUM in key categories like Nifty50, Nifty Next50, and Nifty Bank. We have grown more than 10x in the last 4 years. Our current top three strategic priorities are to deepen penetration and expand user base by robustly growing our digital user base; to execute strategic product expansion through the launch of new, 'investor-first' products that strategically complete our overall offering. This will also help us achieve operational leverage by investing in technology to continuously lower the cost-to-income ratio, which is essential for maintaining a competitive edge amid industry fee rationalization.