We expect an overall AUM growth of 22% YoY for HDFC AMC and 25% YoY for NAM respectively.
JM Financial Research has upgraded its outlook on shares of mutual fund houses given the sharp rally in equity markets since Mar-20 lows. "We are upgrading both HDFC AMC and Nippon Life India Asset Management (NAM) to BUY with revised target prices of ₹2,565 and ₹290, respectively," says JM Financial in its research report. However any sharp deterioration incrementally in fund performances or prolonged period of outflows is a key risk to the research company's estimates. Nifty 50 has gained 31%, Nifty 100 has grown by 30% and Nifty 500 has gained 33% since March 31.