CLSA upgrades HDFC, Nippon Life India AMCs from 'outperform' to 'buy'

CLSA believes domestic AMCs will have huge growth potential, given the huge underpenetration of MFs in the country

CLSA has upgraded domestic asset management companies (AMCs) like HDFC AMC and Nippon Life India Asset Management from ‘outperform’ to ‘buy’, following sharp corrections in them over the past three months. The brokerage sees money managers benefiting from sectoral tailwinds, such as improvement in quantum and quality of flows and increasing penetration.

“The asset-management industry has had strong tailwinds in 2021-22 (FY22). Growth likely to beat expectations, helped by growing systematic investment plan (SIP) flows and strong market returns. The industry remains underpenetrated in India, with an attractive long-term story on financial savings," say CLSA analysts, led by Mohit Surana, in