Equity markets are subject to market risks, but that adage does not seem to apply to stocks of asset management companies (AMCs). While the broader market seems to be drifting downwards, AMC stocks have been hitting new 52-week highs in recent times.
Much of this optimism stems from the fact that there has been a continuous flow of funds into mutual fund schemes. A ban on upfront commissions to agents last October by the Securities and Exchange Board of India (Sebi), and changes in total expense ratio, were expected to impact the growth of assets under management. But that has not happened.
