Thanks for this very useful comment, I used to own HDFC AMC a while back and sold it when its dividend yield fell below 1%. I completely agree that HDFC AMC has a stronger distribution network in terms of banking parentage, but Nippon has a stronger network in B-30 cities. Nippon has the highest retail AUM coming from B-30 cities, which is advantageous as this allows them to charge additional expense ratio. Also, this makes their book less chunkier.
Overall, AMC businesses are superior in terms of being asset light along with strong operating leverage. This comes at the cost of more cyclicality in profits. Nippon management has clearly stated that they will focus on profitable growth and gain market share in debt which is already bearing results (see slide below). Plus, they return most of the profits in terms of dividends giving a nice dividend yield (current trailing dividend yield ~ 2%). I will add back HDFC AMC to my portfolio at a given price (~1800 probably).
