The initial public offer (IPO) of HDFC Asset Management Co. Ltd, India’s second largest fund house with assets of ₹3.06 trillion, is open from 25-27 July. The issue price on a ₹5 face value share is expected to be ₹1,095-1,100, to be decided through the book-building route. In November 2017, Reliance Nippon Life Asset Management Co. Ltd, the country’s fourth largest fund house with assets of ₹2.40 trillion, got listed. Its listing price was ₹294 on BSE Ltd; its shares closed at ₹218.45 on 23 July 2018. Industry insiders says a few other large asset managers may also get listed eventually.
Should you follow the same principles in picking up shares of a fund house as you do when you invest in its schemes? The answer is no. Picking a mutual fund scheme is very different from picking equity shares of its asset manager. Here’s what will determine your AMC’s run on the stock markets.
