- HDFC AMC was Incorporated in the Year 1999 and as the name Suggests HDFC has A major Stake in it.
- Mr. Deepak Parekh is the current Chairman of HDFCAMC and he is behind the Success of HDFC bank.
Business Model of HDFC AMC
- Like in Any Mutual Fund Investors pool their money into various funds.
- Each fund has fund manager. Overhead Costs like land and machinery are not there in AMC business.
- Overhead Costs like land and machinery are not there in AMC business.
- Amc Charges a fees on overall investment that is called expense ratio that is main income source of the company.
Financials of HDFC AMC
- Revenue of the Firm has been on Steady Increase from the previous 5 years Except the Pandemic Year.
- Profit After Tax is 1326 Crores for the Financial year 20-21. Annual Growth is 22% P.a for previous 5 years.
- HDFC AMC Equity Based schemes beat nifty 50 index in the previous 5 years.
- Holdings of the promoters is stable that means they have confidence in their own company.
Technical Analysis of HDFC AMC
- Stocks Current Support Levels are 2775-2800.
- It should be Accumulated at every Dip.
India’s MF’s Industry is a 25 trillion rupees economy which is a 333 Billion US dollar industry and according to me has great potential as the financial literacy grows in Indian households Asset management companies will definitely grow.
Here is the Detailed Version of this Article for those who would like to go into the depths of the Company.
What are Long Term Prospects for HDFC AMC?