Does anybody know what’s happening here? Is this sustainable?
Disc: no positions. Just curious.
15-17% from Treasury operations? Are you sure about these returns?
I was checking MF returns of tier-1 AMCs and all of them are delivering 18-20% CAGR (for large caps). Treasury works just like your typical fund house. So yes I’m reasonably sure average returns on cash and equivalents should be in that range.
As per the latest financial numbers their total investment is 31k crores (mutual funds, bank deposits, cash in bank etc) and other income (mostly interest on income) is 4400 crores. That roughly translates into 14% average return on cash. So not far from my estimate.
1 Like