Another point which is the most important is the Saving rate of large population, which has dropped from 23% to about 19% in the past decade. It is one of the lowest in 30+ years which gives an impression that, people at large are not earning enough to save & invest.
If this issue is addressed, people will start saving more and also investing more in Mutual Funds.
India can grow at more than 8% to 9% in terms of Real GDP, and that should enhance people’s income, savings and huge money will flow into Equity MF(s).
I do not see this happening in near future, which is a negative for any AMC not only HDFC AMC.
SBI AMC is growing because large portion of EPF (About 10% to 15% every year) is being invested in Nifty based ETFs, through SBI MF if I know correctly. This does not reflect their efficiency or fund management excellece.
I am also concerned about restricted growth of HDFC AMC AUM and PAT, but just highlighting other parts which also need to fall into place for AUM and AMC growth in India.
I may be biased as invested in HDFC AMC, but my expectations are moderate.
Subscribe To Our Free Newsletter |