@suhagpatel Thanks for asking. I think you have answered your own question! Individual AMCs will have their own ups & downs (‘ups’ is also there, not just downs!). Purely as a business model, AMC is any day a better business than RTA. Once the initial set up is created and a minimum threshold AUM crossed, there is unlimited upside and almost no downside. Every incremental AUM flows directly to the bottom line. The problem for the retail investor is the valuation at which he is getting in, and which of the many AMCs to choose. RTA is just a sectoral bet on the broad financialization theme with very little control over its own destiny. So you have to choose what you want. I am invested in CAMS because there is an optionality in its non-MF business, where they appear to be doing well. That may provide some alpha. But if I am starting a business today, I would choose an AMC over an RTA any day.
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