Not sure I agree with AMC being a good business.
They’re #13 by AUM, and more than 75% AUM is non equity resulting in much lower yield - plus largely ETFs, FoFs etc.
Radhika Gupta is particularly visible on social media but there’s not much substance in the actual business.
FY22 ROE was around 11%.
HDFC AMC and Nippon are in the 20s.
Best case scenario is that this business gets sold to one of the larger ones.
Regulators are more and more liberal in giving out AMC and PMS/AIF licenses - further increasing competition on the margin.
I remember discussing on VP that both Nippon and HDFC have cash piles as they’re looking to acquire.
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