Lets look at statistics of Indian Mutual Funds Industry- • AUM to GDP ratio in India is 16% and world average is 63% and infact in US this is a high of 140% • Mutual Funds AUM as a percentage of Bank Deposits as on December 2022 is 22% which is 100% in USA. • In India, households save 41% of their savings in financial assets of which mutual funds allocation is merely 2%
Lets talk of a stock which has been on institutional radar off lately- HDFC Asset Management Company.
SBI Mutual Fund has invested about 757 crores in shares of HDFC Asset management Company at 1600 per share. The last traded closing price for the share was 1680 as on 20th March 2023.
The long term median PE for the company has been at 41.4 and the current PE is 25.8. Similarly, the long term median Price to Book value for the share has been at 12.4 and the current is 6.7.
The dividend yield on the stock is 2.5%.
The total Asset under management for the company is at approx. 4.50 lakh crore and currently it stands at 3rd place in terms of largest AUMs. ICICI Pru AMC is at 2nd place with 5.20 lakhs crores of AUM and SBI Mutual Funds the industry leader at approx. 7.15 lakhs crore.
Mutual Fund houses, insurance companies and Foreign portfolio investors all have bene increasing their stake in the company form last two to three quarters.
Lets look at statistics of Indian Mutual Funds Industry-
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