Russia's Largest Bank Launches Mutual Fund Offering Investments Linked To NSE Performance

Russia's Sberbank partnered with JFC First Asset Management to introduce their First-India mutual fund, which is offering investments linked to the performance of the NSE Nifty 50 to Russian retail investors.

The launch was announced at a National Stock Exchange of India event by Herman Gref, chief executive officer of Sberbank's executive board, when he made a business visit to India.

"We are opening another window of investment opportunities for our Russian clients, this time to South Asia," Gref said. "Our new product provides a convenient way to gain exposure to one of the world’s key economic markets—the Indian stock market."

Russia's investors will have access to India's top 50 companies ranked by market capitalisation.

"We are pleased to support Sberbank in launching Nifty50-linked investment solutions that strengthen capital flows and open India’s equity growth to Russian investors through a trusted benchmark," Ashishkumar Chauhan, CEO of the National Stock Exchange, said.

He stated that the initiative reflects "strong confidence" in India’s markets and deepens the financial cooperation between India and Russia.

"NSE is committed to partnering with Sberbank to enhance market connectivity, uphold regulatory and investor-protection standards, and build liquidity and transparency for these products as we create new opportunities for investors in both countries," Chauhan added.

Sberbank faced many sanctions from the US, EU, and New Zealand after Russia's invasion of Ukraine in 2022. This led to the bank's overseas subsidiaries having their licences revoked, getting sold off and going into receivership across 2022 and 2023.

Russia's President Vladimir Putin is set to land in India on Thursday, aiming to consolidate partnerships across bilateral, strategic and economic lines amid recent disagreements between India and the US, chiefly regarding the latter's tariff policies.