HDFC AMC:
Only 1 stock on NSE has all of these:
Disc: Invested.
Yes. very true. But few points
Again my personal opinion.
Vikas
HDFC AMC funds are downgraded by Morningstar, risk to direct AUMs if this continues for medium to long term?? I am surprised to see 10 years returns (< 8%) though significantly outperforming benchmark doesnât beat plain FD.
https://www.morningstar.in/posts/58782/2-hdfc-funds-downgraded.aspx
Recent top holdings per valueresearch - none of hotshots expensive in top holdings HUL/Asian paint/ Titan and so on are missingâŚMost top holdings have done well from March lows⌠âŚPrashant Jain seem to be on top of things
Ranking based on moneycontrolâŚclearly above allocation is paying off per last 1 and 3 month ranking
IMO ranking works with lag, matter of time that it will get revised
Yes you are correct ranking works with lag. What I am wondering what would be natural reaction of existing or new investor looking at long term returns? There are better options available in market especially for Direct DIY investors
What would be the impact on the Q1 results of HDFC AMC based on the news given below? (Assuming this was done on or before June 30, 2020). The Jan-Mar quarter results took a hit on profitability due to the reduction in share price of ZEE. Even ZEEâs share price ended up higher as on June 30 compared to Mar 31. Will this transaction result in reversal of the provisions made in the previous quarter?
Also, as per AMFI website, the Apr - Jun quarter AAUM of HDFC AMC is Rs.3.56L crores. For the month of April it was 3.42L and for May it was 3.54L. So for the entire quarter, the average is 3.56L crores, it would mean just for the June month, the AAUM must be Rs. 3.72L crores. Has anyone gone through this?
June AMFI data - equity AUM goes up but MoM significant drop in inflows
AMFI June data: Net equity inflows at Rs 225.3 crore versus Rs 5,045 crore MoM
some more data
MF flows June-20- Heading towards outflows - Nomura_1017450.pdf (307.6 KB)
Nomura analysis on MF industry, there seems to be downtrend from data points on equity side.
@zygo23554 - could you pl share your thoughts for short and long term for growth prospects for industry and recent events, in past you have been bullish on these for long term - is there any change in your thought process.
IMO there is craze in retail(lumpsum as SIP book is relatively stable though moderating) for direct equity seeing trends like Zeorodha account opening and possibly some redemption for flight to safety like gold. However expect some of these folks to revert to MF soon. - based on interaction with industry folks.
HDFC has a strong brand equity - gaining on liquid funds, and NAM should do well too.
This is not that surprising. A lot of investors who jumped in during the pre Corona bull market would be scared and would have exited from MFs.
Some of them jumped in direct equity but many would wait on the sidelines for the market to be considered âsafeâ again.
I donât think MFs in the long term have anything to worry about. People will jump again when they feel a good bull run in underway.
My personal opinion-
The SIP slowdown in India is a temporary phenomenon. As the Mkt recovers, so will the SIP flows.
There is no greater seduction than a rising Market. Sooner rather than later, SIPs should start showing a rising trend.
The interest rates on FDs have literally collapsed. We all know, what Real Estate has been up to in the last 4-5 yrs. A retail investor who has no time to actively trade / invest in shares, the options are limited. Equity SIPs are the only way out.
Disc: invested in HDFC AMC. I intend to buy more if it corrects from here.
Views may be biased.
This is GREAT business. But my concern continues to be the high premium PE of 40+. Now one can claim that this is a solid FMCG like business so it will always trade at 40+ PE. I find this concerning because the premium PE means that the market has great expectations from this stock. If the profit growth slows down in the near future, Iâm afraid this may get re rated to lower PE levels killing all gains.
According to Zerodhaâs Nithin Kamath the fall in net equity inflows does not mean retail is switching to direct stocks. In fact the month of June witnessed the highest inflows on Zerodha Coin.
https://twitter.com/Nithin0dha/status/1281217059632734209?s=20
Hi All,
I MUST play Devilâs advocate here.
Strong parentage, Corporate Governance & Sunrise sector is all good ! No one can deny these traits BUT what about the Mutual fund returns of the schemes run by HDFC AMC? The AUM has expanded over a decade coz of their Brand name only and HDFC AMC has immensely benefited out of it.
However, there is no denying of the fact that their flagship Schemes such as Balanced Adv Fund itself has given no returns for the past many years. Their Fund Managers have to do really well moving forward as the industry dynamics are changing so fast. I find it amusing that they simply do not invest in any new age businesses at all.
These HDFC AMC Fund Managers are still stuck with the dividend obsession and keep investing in Companies like NTPC, Power Grid , Coal India, SBI etc. they might do well in the future but I am not sure. Where is Affle India, IndiaMart Intermesh, GMM Pfaudlers of the world? They should hire some fresh blood perhaps. Mr. Prashant Jain and his entire team must think differently , I think these guys are still stuck in âValue investingâ era. What returns you get matters and nothing else. It is the very same reason that they have given up their leadership position to SBI MF, Navneet Munot is handing at least their end of bargain well comparatively.
I love HDFC AMC, letâs be clear on that but I can very easily see some chinks in the Armour. Recently Prashant Jain himself reduced his stake in the Company, so did Aditya Puri just before crash Lol⌠Hope u guys know this. Anyways this was my biggest bet I have exited and moved to HDFC Life, their recovery says much more than HDFC AMCâs correction from 3800 to 2460.
Thoughts?
As markets mature,we Indian investors realize that MF industry can only occasionally give better returns, than Index, so Indian investors are gradually shifting to passive investing in ETFs
My take and exp
I too was observing HDFC AMC vs HDFC life ( have both) from march lows to current, as we know that mkt collective wisdom says something
Letâs look at events since HDFC AMC listing
1,2,3 took price to 3300+ during pre covid days and then 4,5,6,7 taking it to where it is.
Few Qs to ponder on
For med to long term ( and even short term IMO beyond 1qtr) story seems intact, hence Invested as part of core PF.
Points well put, Industry would grow, but it seems HDFC AMC is going to loose a lot of Market share in Tier 1 Capital cities, seems they need to start tapping B2,B3 cities and towns now.
But I come back to reiterate my irritation on their Money Managers attitude. If you do not generate returns via MF schemes which you run I am afraid Customers will be switching more frequently.
Please remember, HDFC AMC is into existence since year 2000, they are listed just a few years back is another matter, they have immensely benefitted from the brand HDFC house. This is the primary reason that their Money Managers inspite of poor performance kept making money via fees. Their AUM expanded but not the returns.
More tech savvy customers will try their hands out in Direct Equities. The mother of all bull run is due for sure and HDFC AMC has to think out of the box coz the traditional way of choosing Companies wonât work.
What I want them to do is:-
Stop investing more in dividend yield companies and these PSU laggards, enough of it. Dividends can never make one rich, I mean the investors of BajFin laugh at the investors of Ntpc, L&T and ITC investors. Why would you risk your hard earned capital for dividends. 
They still will be generating a lot of cash flows. Go for inorganic growth. Behave like a Vanguard, Carlyleâs of the world. Invest like a venture capitalists. Else I am afraid it will be a great business with average returns.
Regards
Deepesh.
I would still give HDFC group credit for their culture, leadership, brand equity and governance.
Regarding MF scheme performance, and constituents, we dont have much control - this would surely affect my decision to invest in their MF.
As far as listed AMC choices, unless sector fundamentals change, I would give longer rope to HDFC AMC and willing to add some Nippon too at lower levels for basket. Industry may see some consolidation and Mr Parekh & Team is known to time things good( Gruh exit, Apollo munich being recent)
SBI mf has advantages of govt mandates and as per some field advisors- HDFC brand is actually helping to stand out particularly at the cost of smaller players, regardless of scheme performance in short run.
Mr Jain style is a different conversation and we dont know what his mandates are, Baj fin CEO too sell their stock like clock work - wont read too much into it. agree with wishlist of new age companies in their scheme - but that argument extends to Nifty too - still mostly same decade old biz,
Personally am invested in Naukri, Affle and Indiamart.
It is true that HDFC funds have been underperforming for long time. But people tend to ignore the brand value and underestimate Parekh. They still believe the notion that outperformance of fund is a necessary criterion for HDFC AMC stock to perform. It is true outperformance helps, but it is not the only criteria. The consensus trade seems to be HDFC AMC not performing. HDFC knows how to machine the markets. These factors alone is sufficient indicator to invest in HDFC AMC.
