IMHO, finding correlation between GDP growth & MF AUMs and using it as an input to assess investment in a particular AMC is a bit far-fetched. For a macro perspective, you can look no further than trends in % of household savings into equity, aggregate MF industry AUMs & folios and SIP numbers. There is a broad consensus about the direction in which these are expected to move in future and a couple of percentage points of GDP here & there will not make a difference.
More important for the particular stock you own will be micro factors like its sales & distribution reach, incremental market share and management’s investor friendliness (dividend payouts). AMC business is a good business to do – low capital intensity, high customer retention, high margins, etc. But supply is probably rising faster than demand. Focusing on supply side factors is more important than demand. Favorable macro are good for industry growth but may not necessarily translate into gains for investor.
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