I am invested in ABSL AMC right from the IPO days and averaging regularly (catching the falling knife and crying in the dark). The reason I purchased the stock was because it was the largest non bank backed AMC company and my funds from ABSL at the time were doing very well. I trusted and still trust the management.
However, recently a friend pointed out how ABSL AMC’s funds are not performing well. In fact, I myself noticed these in the mutual funds I have with them. People buy funds based on their last 1 year performance (not saying that is right). I couldn’t find ABSL’s funds in any of the screeners on Value research.
Their AUM went down in the last one year. Profits have gone down as expected.
HDFC AMC and UTI AMC – AUM went up, profit went up
Nippon and ABSL – AUM went down and so did the profit
It could be because people were not getting great returns or since FD rates went up, people would have moved profits to FD. From March 2022 to March 2023, there is slowdown for sales for every AMC.
I am still invested and is going to watch and see how ABSL will play this out. Curious to know what others think about this and see if there are any contrarian views.
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