Best AMC Stocks To Buy Now: Research Report By PL

AMC – AN INVESTABLE OPPORTUNITY

• AMC as a business is that of high operating leverage,i.e., for every incremental AUM it gets assuming steady performance of schemes, it generates even better profits since the fixed costs are relatively low in this business. Also, as is evident from the numbers above, the MF business is a fundamentally strong business to invest owing to its High ROE, ROCE and Free Cash generation.

• For an investor, Total Return = Capital Appreciation + Dividend, Bonus, etc. Investing in AMCs, not only guarantees capital appreciation due to the massive room for the industry itself to grow as is highlighted further in the report, but also secondary returns in the form of Dividends due to high free cash generation, enhancing Total Returns for an investor. Considering both these factors, we consider AMCs as one of the best long term investible opportunities with a multi year growth outlook.