Substantial outflows, particularly in the equity portfolio, caused huge volatility in average assets under management (AAUM) of asset management companies (AMCs), during the nine months from June 2020 to February 2021. The Street, however, was unfazed.
This is because stocks of AMCs have always enjoyed much of the Street’s optimism, given that they are viewed as the best proxies to capture the country’s financialisation theme, which refers to people preferring investments in financial products vis-à-vis traditional instruments (gold or real estate). HDFC AMC and ...
