Thanks @devarshi84 - you gave me a reason worth seeking - let see how big is the potential with Start MF. btw NSE also has similar platform, I think BSE has 60% market share. ( correct me if i am wrong )
Star MF is going to generate around Rs 20 of profits this year (Q1 they generated Rs 5 Cr /-) (if M.F flow remain good ) . which is like 10% of overall profits.
How big it can grow ?
Data from MF tracker Value Research reveals the share of direct assets, up from 15 per cent to 40 per cent between FY13 and FY 17, had dropped to above 38 per cent.
The awareness level is increasing drastically,” said Kunal Bajaj, founder & CEO of Clearfunds. He observed while people were not willing to pay a big amount as advisory fee, they would be willing to spare the smaller amounts the platforms charge. This makes it viable for firms such as his that use automated robo-advisory services and do not hire financial advisors to chalk out portfolios for individuals. He believes such personalisation might be required for only certain customers. Dhirendra Kumar said independent financial advisors and distributors might be adversely affected by such low-cost offerings, though investors might benefit. With big players like Paytm yet to launch, direct plans could well receive more of a boost in future.
Very rough calculation just to see how big Start MF can be -
So, Today with 40% market share of Direct - The StartMF platform is earning Rs 20 Cr yoy, Lets say if this becomes 80% market share ( very bullish scenario ) in 5 years, and BSE Star able to maintain its market share then it will make Rs 40Cr /- out of it ?
Now MF flow and all is subjected to market sentiments and ETFs ( if more and more people start indexing) etc .
But considering everything same as today , we should realistically expect around Rs 40Cr at max from this platform, which is like 25% of net profits.
May be it has the potential to contribute 5% growth ( Rs 10 Cr ) to the net profits (Rs 200 Cr) for 4 - 5 year.
I feel not bad and not good enough also.