How Are Investors Rewarded By Stocks of Fund Houses?
As a successful instrument for financial savings and investment, mutual funds have recently gained popularity among casual investors. Asset management firms’ (AMCs) profitability and expansion have greatly benefited from this developing trend. Four fund companies have launched their shares on the markets in an effort to take advantage of this positive trend. Investors may now choose to purchase shares of fund firms. The bourses mention four fund houses: UTI AMC, Aditya Birla Sun Life AMC, HDFC AMC, and Nippon India AMC. Here, we look at the performance of various fund firms’ stocks.
Performance
The fund houses fared considerably better in the previous month, according to an analysis of the performances across various time periods. Aditya Birla Sun Life AMC was listed in the middle of 2021, UTI AMC in the end of 2022, whereas HDFC AMC and Nippon India AMC were listed significantly sooner.
Performance over a Year vs. Performance Over a Month
Starting with the one-year performance, Nippon Life India Asset Management Ltd.’s share price fell by 11.77% over that time, ending at Rs. 245 on June 12, 2023, representing a loss of Rs. 32.70.
On the other side, HDFC Asset Management Company Ltd. saw a 7% increase in growth, with its share price jumping by Rs. 127 to Rs. 1,940 on June 12, 2023. The share price of UTI AMC Ltd rose by Rs. 70.30, or 10.90%, to reach Rs. 715 on June 12, 2023. This is a remarkable one-year performance. Aditya Birla Sun Life AMC, on the other hand, had a drop in its share price of 9.19%, finishing at Rs. 374.95 and incurring a loss of Rs. 38.
However, Nippon Life India AMC recorded a minor increase in share prices over the last month of 3.40 percent. The share price of Aditya Birla Sun Life AMC increased by 5.90%, or Rs. 20.85, while HDFC AMC Ltd. increased by 6.55 %, UTI AMC increased by 9.61 %, or Rs. 62.70.
Various Time Periods
Nippon Life India AMC Ltd. experienced a small decline of 8.99% over the course of the past six months, HDFC AMC Ltd. experienced a more significant decline of 13.26%, UTI AMC showed a comparatively stable performance with a decline of 6.45%, and Aditya Birla Sun Life AMC experienced a significant decline of 17%.
UTI AMC excelled throughout a five-year period, with a 42.25 percent growth in share price (Rs. 212.35). HDFC AMC increased by 11.50% (Rs. 201.10), Nippon AMC increased by 13.75%, and Aditya Birla AMC decreased by 46.27% (Rs. 322.60 loss).
Conclusion
The stock performance of listed players has been disappointing despite the mutual fund industry’s strong 17% compounded annual growth rate. Investors are thus encouraged to carefully assess whether it would be better to invest in the fund firms’ equities or in their schemes that have produced better results over the last year.
