HDFC AMC Q1 Results! Looks good for future given the name HDFC! #hdfc #hdfcamc #equity #debt #StocksToWatch
Disclaimer: Invested
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HDFC Mutual Fund launches its first international fund, tracking MSCI World Index
Is there anything unique that can help HDFCAMC garner good funding with this NFO (similar to what ICICI & SBI did recently)?
Also, does any one know the expense ration for this passive fund? As this is being offered in collaboration with Credit Suisse, will some of the income from TER be shared with Credit Suisse?
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Nothing unique in the sense that, every AMC which has a bank will push such NFOs to some extent and will garner some AUM and I think this is the reason why regular funds have more AUM when it comes to NFOs. And, the separate AUM disclosure for regular and direct is not published anymore AFAIK.
What difference does it make if a part of TER of 1 fund is shared with another institution? How much AUM will this fund can have? HDFC has 416949 crores QAAUM already, how much more AUM can this 1 fund bring? But this being a FoF, it will have more TER compared to other equity funds.
And, this being an international fund covering many geographies, people who like the narrative of geographical diversification, investing opportunity to many developed economies will invest, so it may garner good AUM, relative to other NFOs. But the consistency of AUM growth will be in relation to the return of the fund.
https://www.mutualfundindia.com/mf/aum/details
There is only 1383 crores difference between HDFC’s current QAAUM and last QAAUM, the lowest of all the bank related AMCs. All other major bank related AMCs have increased their QAAUM by at least 10,000 crores, SBI leading all the other AMCs, has increased its QAAUM by 18,807 crores.
Not invested.
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Yes, I watch the monthly AAUM figures and HDFCAMC hasn’t seen any AAUM growth month-on-month. SBI is way ahead (thanks to EPF ETF though) and ICICI has clearly taken over second position. But as HDFCAMC is going through a transition, perhaps growth is ahead of them.
Is HDFCAMC still holding shares of Zee (the collateral)? Due to recent events, Zee share price has gone up a lot. If HDFCAMC still holds some of the collateral, it may help in higher other income when they sell it.
Standard Life has reduced its stake by 5%. Does it raise any red flag? Senior members please advise.7D17A7ED_3C2A_4100_9573_0CD9110BCFE9_140847.pdf (272.9 KB)
Disclosure: Invested
A red flag is a sign of warning and danger. How does the selling by an investment company which invests and sells as per its strategy is a red flag? It has been reducing its stake regularly although this is the biggest reduction. And it still has 16% stake.
You can definitely be concerned about a 5% sale from the promoters, but you should look at it in context. It is a foreign institution, it is an investment company, so it could have other plans to invest elsewhere. Although it did not sell at the ATH price almost 2 years ago, it sold now. And the sale was reported prior to the selling.
So find as much information, data as you can and see if there is any context.
Not invested, just my thoughts.
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Standard Life had been selling it’s stake in HDFC Life as well over the past couple of years. I think we need not worry about it.
Does anyone know how much funds was raised in the recently closed NFO - HDFC Developed World Index Fund?
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A smart move OR an act of desperation to regain market share and leadership?
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The factor/ passive party has just started in India. So its not a late move. I can understand from a business POV how difficult it is for one to disrupt themselves. Such offerings have not shown meaningful scale in Indian markets yet, and will eventually eat into the profit pools of active investing. So it is an added cost to provide these options with no timeline on when they will scale up, and additional threat of disruption.
But with new comers going active on the passive brigade the incumbents are left with no choice now to provide such offerings. Disrupt yourself or be disrupted by others.
So yeah, this is a move made by someone who has been backed into the corner.
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Yes it looks to be the case. HDFC AMC is pushed to no.3 position now from no.1 a couple of years ago. The only way that I see for them to regain market share is through aggressive inorganic growth. Even if they do, most of the funds will be same, just acquiring more customers and AUM under existing schemes.
A small observation. Mr Prashant Jain’s strategy of value investing was disliked by many in a soaring bull market of consumer finance, pharma & tech. Both Investors & Fund holders disliked that. Most of his such bets were in Power, Resources sector if I am not wrong…
The Fund Manager had to be changed eventually. I am not sure what happened to his value investing bets. Were they sold when he left and as new strategy came in?
Off late, Power, Resources & some value bets seem to be doing exceedingly well! Strategies do work over long term, provided one sticks to them. A Tata power is almost 6X from its bottom last year, equal to many hot Tech & Pharma picks now…
Disc: Satisfied holder of HDFC Midcap Opportunities fund, invested in HDFC AMC & biased. Not a buy/sell recommendation. Just an observation
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Just saw it on twitter and checked on VR.
"In the last 1 year, HDFC MF is the only one where ALL its scheme in Flexi/ Midcap / Focussed/ Large & Mid Cap/ Retirement fund - have given 69+ to 75% returns beating Sensex/Nifty returns of ~ 55%. "
The stock selection and allocation seems to have changed a lot here in the last one year. Focus right now looks to be on performance than philosophy.
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Competition has intensified for HDFC AMC. SBI MF’s AUM on Sep 30 is 6.01 Lakh Crores (vs. 4.35 L for HDFC)
Between June & Sep, SBI’s Equity AUM (excl ETF) has grown by whooping 40,000 crores (including the recent 15000 Crores NFO). And the ETF AUM has grown by another 32,000 Crores.
Total 72,000 increase in AUM (not AAUM) in just 3 months.This would mean HDFC AMC will lose it’s no.1 position in Equity AUM as well soon (if not, already).
Quite a challenge for Mr. Navneet Munot
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They should be available in AMFI website this week or next. I gathered this info directly from the respective company websites.
https://www.amfiindia.com/research-information/amfi-quarterlydata
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Does anyone know how much funds did HDFCAMC raise with their Developed World Index FoF?
Hi,
Quarterly results out.
Thanks,
Deb
1100 Crores. Expected at least 5000+ crores. Fund raise seems tough