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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Despite record inflows, AMC stocks have not delivered strong returns. Moreover, the best AMCs are not listed and may never opt to be, for good reason.
You see a booming sector; the addressable market is growing fast, and so is the number of customers and business volume. You expect most companies in this sector to do well, and their performance will be reflected in their stock prices—elementary stuff.
If I look at sectors showing objectively stupendous growth, mutual funds sit at the top of my mind. The financialization of Indian savings is underway, and how. Total assets under management, or AUM, have grown 3x in the past seven years, a compound annual growth rate of 17%, far ahead of nominal GDP growth. And if you thought …
A dismal track record in portfolio management services doesn’t help the firm as it takes its first steps in a crowded industry dominated by some heavyweights.
The regulator’s shift to an auction-based close was meant to curb manipulation and mirror global markets. Instead, it has run into thin participation that is only amplifying distortions and volatility.
As retail interest in public issuances fades, mutual funds are filling the gap—funding promoter exits and delivering subpar returns to the very investors they represent.
