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Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Poor investment decisions and chronic underperformance have led to the Aditya Birla Group’s mutual funds business steadily losing assets under management as well as market share.
Editor's note: Aditya Birla Sun Life AMC has an active exposure of about Rs 1,700 crore to the Adani group’s debt, the highest among mutual fund houses in India. This, in the wake of Hindenburg Research’s scathing report on the group, should have been cause for concern. While it is, it isn’t its biggest worry. Days after the Hindenburg report, the asset management company announced a 11% year-on-year dip in its net profits for the quarter ended December 2022. This was primarily on the back of a 36% dip in other income, which is primarily the gains and losses on its own investments. In fact, questionable investment decisions and poor performance underline the Aditya Birla Group’s mutual funds business. In 2022, it slipped two slots in the league table of AMCs, going from fourth to sixth, as it saw the highest decline of assets under management among its peers. Its AUM declined by 5.7% during the year. That’s a real setback because even when returns were below par in previous years, Aditya Birla Sun Life AMC always managed to grow its AUM, …
The Sprng Energy acquisition gives Aditya Birla Renewables instant scale and diversification. But high leverage, execution delays and margin pressures point to a tough test ahead.
As growth in equities cools, asset managers are looking to embed themselves in payrolls, payments, and credit. This raises their influence, but also the stakes.
Poor investment decisions and chronic underperformance have led to the Aditya Birla Group’s mutual funds business steadily losing assets under management as well as market share.
Editor's note: Aditya Birla Sun Life AMC has an active exposure of about Rs 1,700 crore to the Adani group’s debt, the highest among mutual fund houses in India. This, in the wake of Hindenburg Research’s scathing report on the group, should have been cause for concern. While it is, it isn’t its biggest worry. Days after the Hindenburg report, the asset management company announced a 11% year-on-year dip in its net profits for the quarter ended December 2022. This was primarily on the back of a 36% dip in other income, which is primarily the gains and losses on its own investments. In fact, questionable investment decisions and poor performance underline the Aditya Birla Group’s mutual funds business. In 2022, it slipped two slots in the league table of AMCs, going from fourth to sixth, as it saw the highest decline of assets under management among its peers. Its AUM declined by 5.7% during the year. That’s a real setback because even when returns were below par in previous years, Aditya Birla Sun Life AMC always managed to grow its AUM, …
The Sprng Energy acquisition gives Aditya Birla Renewables instant scale and diversification. But high leverage, execution delays and margin pressures point to a tough test ahead.
As growth in equities cools, asset managers are looking to embed themselves in payrolls, payments, and credit. This raises their influence, but also the stakes.
As retail interest in public issuances fades, mutual funds are filling the gap—funding promoter exits and delivering subpar returns to the very investors they represent.
As retail interest in public issuances fades, mutual funds are filling the gap—funding promoter exits and delivering subpar returns to the very investors they represent.
