BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Asset management companies are in a positive momentum with increase in equity mix and strong growth in assets under management for two successive quarters now.
Beyond robust capital market performance, this is also driven by:
equity flows, which have been positive for seven months now;
rising systematic investment plans; and
increase in number of mutual fund folios.
We expect YoY/QoQ Ebitda growth of 12%/7.6%, 55%/19%, 95%/23% for HDFC Asset Management Company Ltd., Nippon Life India Asset Management Ltd., UTI Asset Management Company Ltd. respectively, distinguished primarily by AUM growth.
While improving equity mix should theoretically lift yields, we have seen this often does not play out due to difference in fund size composition, higher trail commission for new assets vs legacy assets, and varying intensity of commission payouts.
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