AMCs make a profit of around 30 paise for every Rs.100 worth of assets they manage. An analysis of FY 2021 result of the three listed AMCs — HDFC, Nippon India and UTI — shows that their net profit to AUM percentage is around 0.30%.
We have taken average AUM of March 2021 for calculation.
In its draft IPO prospectus, ABSL MF has reported that its ratio of profit before tax to AUM is 0.30%. The revenue to AUM ratio is 0.49% for the AMC.
In FY 2021, HDFC AMC made a profit of Rs.1,326 crore as against an average AUM of Rs.4.16 lakh crore. The profit is 0.32% of the AUM.
Nippon India AMC earned Rs.679 crore profit from Rs.2.3 lakh crore AUM and UTI AMC made Rs.494 crore profit by managing Rs. 1.87 lakh crore worth of assets. They have a profit to AUM percentage of 0.30% and 0.27%, respectively.
*All numbers are in Rs.crore
The total income per Rs.100 AUM was in the range of 53-66 paise. HDFC had a revenue to AUM ratio of 0.53%. Nippon and UTI had a ratio of 0.62% and 0.66%, respectively.
