Are asset managers irrational in not listing their booming businesses?

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 …

Author

Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

Editor, Business

ujval@mailtmc.com

Pune