HDFC AMC

Mumbai headquartered HDFC Asset Management Company Ltd (AMC), part of the country’s financial conglomerate HDFC Group, is one of the leading mutual fund houses in India.

Promoted by Housing Development Finance Corporation Limited, the company offers a diverse mix of funds in a bid to tap all sections of investors. It caters to a customer base of 66 lakh unique individuals, with a total Asset Under Management (AUM) of ₹4.37 lakh crore, as of March 31, 2023.

Based on closing AUM, the company had a market share of 11% in the mutual fund business in India in terms of total AUM. In terms of actively managed equity-oriented funds in the country, its market share is 11.9%, according to the FY23 data.

Incorporated on December 10, 1999, the company was registered with the Securities and Exchange Board of India (SEBI) on July 3, 2000. The next year, it became a joint venture of HDFC Limited and ABRDN Investment Management Limited (erstwhile Standard Life Investments Limited).

In 2003, the company acquired Zurich Mutual Fund schemes and took over Morgan Stanley Mutual Fund in 2014, boosting its AUM through both deals.

HDFC AMC came up with an Initial Public Offer (IPO) in mid-2018. It was listed in the bourses on August 6, 2018

The company has a wholly owned subsidiary HDFC AMC International (IFSC) Limited, housed in Gujarat International Finance Tec-City (GIFT City), Gandhinagar. It was incorporated on May 27, 2022.

HDFC AMC’s market capitalisation stood at more than ₹72,900 crore as of January 8, 2024. HDFC AMC share price has gained over 8.72% in the past three years.

HDFC AMC business operations

The company serves 1.14 crore accounts, through 228 branches and over 7,500 distribution partners. Its business activities are spread across 99% of the pin codes in India.

HDFC AMC operates 44 branches in north India, 73 in western India, 56 in the southern part of the country and 54 in eastern India. Maharashtra has the maximum number of branches (35), followed by Gujarat (23) and Uttar Pradesh (19).

Besides, it has a representative office in Dubai (UAE).

As of March 31, 2023, the company ran 86 schemes. Twenty nine of them are equity oriented, and 32 are debt-oriented, and two are liquid schemes. The other 23 schemes include arbitrage funds, exchange-traded Funds (ETF) and fund of funds (FoF).

Equity schemes contribute around 56% of the AUM at ₹2.46 lakh crore, with debt-oriented schemes constituting the rest 44%.

HDFC AMC delivers portfolio management and customised account services to high net-worth individuals (HNIs), domestic corporates, provident funds, trusts, family offices and domestic and global institutions. As of FY23, the aggregate assets under this business category stood at ₹1,825 crore.

Financial highlights

Total revenue increased by 2.03 % to ₹2,482.57 crore in FY23 from ₹2,433.2 crore in FY22. Asset Under management (AUM) in FY23 rose 7% to ₹4.37 lakh crore from ₹4.08 lakh crore in FY22. Operating profit increased to ₹1,555 crore in FY23 from ₹1,537 crore in FY22, representing a year-on-year growth of 1.17%. Profit after tax (PAT) increased 2.21% year-on-year to ₹1,423.92 crore in FY23 from ₹1,393.13 crore in FY22. The company's earnings per share (EPS) increased to ₹66.75 in FY23 as against ₹65.36 in FY22.