HDFC Asset Management Company

HDFC debt funds AUM used to be very stable. But it came down quite a bit in March. Below is a comparison between AUM in Nov 2021 & April 2022 (as Nov 2021 is the peak so far).

Any ideas on the challenges HDFC is facing? Other AMCs have not seen such a quick fall in debt funds

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I could think of 2 reasons. One reason could be that who had redeemed may have anticipated a hike in interest rates, and in order to not lose anything redeemed. The other reason could be, people may have redeemed from debt and moved to equity, timing the market.

The above table looks that way, as high redemption happened in such categories like corporate, floating rate, along with UST, MM, liquid and overnight.

I think HDFC has very high AUM in liquid fund category, could be the same with all short term categories, if that is the case, then all other AMCs funds must have got reduced in proportion to their AUM.

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I don’t see this much decline in other big AMCs, hence was wondering what’s happening with HDFC. I had expected a rebound in April month but that didn’t happen

I guess the fall in AUM is not because of any qualitative reasons, HDFC is not Franklin.

People usually invest with big fund houses when it comes to debt. And if the fall is because of the anticipation of a bond rating downgrade should reflect in all AMCs, as all AMCs more or less invest in the same type of bonds, and big AUM funds always have very big PF so the allocation to one bond is less.

Or you can check for previous AUM information, to see if this is a regular occurrence with HDFC.

SBI AMC numbers (just for comparison). Al though margins are less on a % basis, absolute profit numbers are increasing as the AAUM is growing fast. I guess parent SBI is doing a lot of push to increase AAUM size so they can do a good listing. SBI Life insurance was also growing very fast for a couple of years in the past and then slowed down

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