India’s largest fund house by assets, HDFC AMC has posted 42% growth in its profit from Rs.205 in Q1 FY 2018-19 to Rs.292 crore in Q1 FY 2019-20, says a press release issued by the company.
An analysis of earnings growth of the fund house shows that reduced expenses and increase in equity assets have helped the fund house report strong earnings. The fund house has also derived profit from portfolio management, alternative investment funds and offshore advisory services among other things.
The AMC incurred expenses worth Rs.11 crore as fees and commission in Q1 FY 2019-20, 86.74% lower from Rs.84 crore that it spent in the corresponding period last year. Currently, the fund house has over 75000 distributors and NDs empanelled with them. A major portion of their equity assets i.e. 65% has come through these distributors and NDs as on June 2019.
Overall, the fund house has reduced its operating expenses by 40% from Rs.206 crore to Rs.123 crore over the last one year.
In addition, the AMC’s equity assets excluding arbitrage funds and index funds grew to Rs.1.69 lakh crore with a market share of 16.2% as on June 30, 2019. The AMC is the largest actively managed equity fund manager in the country with the equity to debt assets ratio of 48:52. Further, the fund house has monthly SIP book of Rs.1270 crore.
