IMO, MF industry is surely underpentrated. May be it will grow faster than GDP, may be it won’t.
What I am unable to figure out is HDFC AMC’s point of differentiation.
I thought factors like brand name and bank sales channel will make HDFC AMC stand out. Management keeps harking back on these points in con calls. However these differentiators aren’t translating in AUM numbers.
There are players with no bank behind them (PPFAS, Quant) achieving superior AUM growth, albeit low base. There are players with a bank behind them also achieving superior AUM growth (SBI, ICICI).
I think a major differentiator that tilts the scale is medium term performance of funds. Barring recent couple of quarters, HDFC funds underperformed its competitors. It may take a few quarters of consistent performance by its funds coupled with good visibility of fund performance in media to change consumer’s perception.
Disclosure: Sold out 1 quarter ago at loss. Hence may be biased.
| Subscribe To Our Free Newsletter |
