$$ Uncle Sam $$
This comparison is going viral, surprised to see our biggest AMC is just 1% of American AMC. To me, they are too big and can literally direct the world markets.
DarkerKnight
Stealth
6 months ago
Should we account for price parity and relook at the list?
Why price parity will play a role here? AMCs hold assets across the globe. You might have to convert all non-American assets, making the overall computation too complex.
Parity certainly matters right? If majority of BlackRock investment is in US and majority of SBI investment is in India, why don't parity count... Ofcourse even after accounting for parity this will be quite less, that's a different matter though
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In the US a lot of the investments into these managers are from pension funds - each of which is a multi billion fund in itself. Think of NY firefighters pension fund, Canadian teachers fund etc etc. To compare something like that if you bring up LIC in india - their AUM is around the 600B USD mark for last year, which isn’t particularly bad when you look at the lower ones on the american list and account for our country being poorer in general.
Feb 2024 alone had nearly 50L new Mutual Fund SIPs registered in India - that’s a huge number and the trend for MFs is only upwards in india.
Blackrock also owns a lot of Real Estate which we don’t have an equivalent of in india, the mutual funds are strictly holding Equity or Debt or Cash of some form so it’s not quite and apples to apples comparison. Same for the other names there (except Vanguard)
I feel comparing an insurer with AMC might not be a good comparison. Even with western Pension funds, comparing EPFO should be a right approach. We all know how efficient EPFO is.
majboormajdoor
Stealth
6 months ago
@BearGang. Do you work in GSAM by any chance?
Blackstone owns Real Estate. I don't know if Blackrock does outside of their sponsored ETFs.
But agree. Financial assets were not as popular in India before. Our demography is quite young and just started to earn while most US assets are held by older generation's Defined Benefit pension plans. Also, we shud look at the PPP values for parity.
With time the difference will decrease.
Indusplateau
Stealth
6 months ago
We also need our business to go global. Indians will continue to invest in mutual funds... This is very long game. 20-30 years.
India's AUM for the month of Jan 24 was 52 lakh crores total, how come this is so less.
SBI MF is 8 lakh crores, I googled and checked.
what is this screenshot about?
GeneralZod
Stealth
6 months ago
It's fidelity , not fedelity
Important to note that their retirement schemes are invested with these AMCs while ours are invested with EPFO. Even with that there is a lot of disparity, as @BearGang said pension funds also bring in deca billions. With rise of NPS it should rise, but there will be a significant rise if Govt shifts from EPF to NPS as default retirement scheme for employees
EPF funds are mostly like fixed income assets managed by EPFO, govt takes loans from them as it's at a good interest rate and money is locked in for decades without people's ability to withdraw, so basically EPF is Govt's way of raising debt while NPS funds are managed by AMCs and invested into the stock markets and bonds
See all the top MF players in the USA have minority stakeholding in their competitors. There are a lot of shady details which they do not disclose. The power of the green back is too huge...Indian MF industry will grow manifold but difficult to reach the likes of Vanguards (or) Black Rock (or) Fidelity (or) State Street
That's why these big corporates control the USA. Imagine being a small company, politician or a citizen being in bad terms with any of these companies, their life is *****.
Not surprising at all. US is 10x of India in GDP.
And their retail/individual participation in markets (direct or through MFs) is 10X that of India.
If these two are improved, then our largest MF will also be at the same level as that of Blackrock.
TeaBae
Student
6 months ago
Dumb af question but doesn't the currency conversion for India misrepresent the fund size?
Not necessarily, many economic parameters are reflected in $ terms.
For example - GDP of a country. Moreover, assets of all different AMCs are across the globe, it would be difficult to compare such computations.
The idea here is to reflect on FII/DII sizes and how it can impact Indian markets. At the same upside potential for Indian AMCs.
