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deveshkayal
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   Topic: AMC Business ~ The fine print
Posted: 17/Dec/2007 at 4:54pm |
Old but relevant article on AMC's here
"AMCs turn profitable after an AUMs of 5000-6000crs."
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
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Posted: 17/Dec/2007 at 6:39pm |
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Very good article but markets rerate AMC forays as if the gold would fall the next day but once companies achieve traction then there is a windfall gain to be made that is because most of the costs are fixed.
The prospective entrants in this business are Axis Bank, Religare, Edelweiss. But actually getting that kind of an Amc would not happen overnight.
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Vamsee
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Posted: 17/Dec/2007 at 8:01pm |
I am highly positive about AMC business. The best thing about it is the scalability. Say if the AMU has increased 10,20 or 100 times, still the efforts/costs required to manage would be almost same. This means its a lucrative business to be in for established players. Some time ago I read in news some where that franklin templeton is planning to come out with an IPO in India. I would definitely apply for it. I also wish that once AMC's become profitable, the companies like HDFC, Rel Capital list them seperately.
There is so much of opportunity out there with just 2-3% of all savings going in to equity. Even if it increases to 10%, the implications for the fund managing companies is mind boggling.
Edited by Vamsee - 17/Dec/2007 at 8:06pm
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basant
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Posted: 17/Dec/2007 at 8:10pm |
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It should be a block buster IPO I despperately want to buy a AMC but all the embedded plays like Reliance, Tata Investment, Sundaram, Kotak are all underrepresented in their ooverall business by their AMC business so even a big move in the AMC profits will just nudge the overall profits.
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Vamsee
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Posted: 17/Dec/2007 at 8:15pm |
Source :
Assets managed by all AMC's in India :
Amount in Cr as of Nov 2003 : 132366
Amount in Cr as of Nov 2004 : 149581
Amount in Cr as of Nov 2005 : 204519
Amount in Cr as of Nov 2006 : 341378
Amount in Cr as of Nov 2007 : 537943
We have still barely scrached the surface.
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kulman
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Posted: 17/Dec/2007 at 9:55pm |
New players entering ...
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The public sector Union Bank has decided to enter the Mutal Fund business as part of its diversification process, Bank Chairman and Managing Director M V Nair said here on Monday.
"We will start looking for a partner for the Mutal Fund business and it will be operationalised by the middle of next fiscal," he told reporters after the two-day Board meeting of the Bank here.
The Bank plans to enter 20 countries by 2012, subject to approval of the controller.
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Life can only be understood backwards—but it must be lived forwards
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basant
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Posted: 17/Dec/2007 at 10:03pm |
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AMC is becoming a fancy business vertical more them the distribution network which is needed to sell products these new entrants would have to look at smart people to manage the show. Quality fund managers are very much a scarce commodity and it would be interesting to note from where these ppl get their managers.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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deveshkayal
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Posted: 17/Dec/2007 at 10:06pm |
Originally posted by Vamsee
Source :
Assets managed by all AMC's in India :
Amount in Cr as of Nov 2003 : 132366
Amount in Cr as of Nov 2004 : 149581
Amount in Cr as of Nov 2005 : 204519
Amount in Cr as of Nov 2006 : 341378
Amount in Cr as of Nov 2007 : 537943
We have still barely scrached the surface.
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AUMs increases as market rises. What we need to find out is how much retail guys have actualy invested. Also, AMCs have debt component greater than equity as corporate guys prefer debt to equity.
UTI MF IPO will open in Feb. You can buy pure AMC then !
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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