Recently both Zerodha and Bajaj Finserv got the approval to set-up their AMCs.
So how does an AMC business work?
What I really like about this business is the ability to scale-up without a commensurate increase in costs.
Whether an AMC is managing 50 cr. or 50,000 cr. there is only a limit to which your costs will escalate.
Let's take a deep dive into understanding how the AMC business works and why HDFC AMC has been on a dream run ever since it listed.
A low interest rate regime in India coupled with the push by various initiatives to invest in India right from "Mutual Funds Sahi Hai" to people gaining renewed interest in the Indian capital markets has amplified the tailwinds for this space.
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