HDFC Asset Management Company Ltd — Q4 FY26

HDFC Asset Management Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=iGQUzqPSgpk Published: 3 weeks ago

0:00 [music] 0:03 3 seconds Ladies and gentlemen, good day and welcome to Q4 FI26 earnings conference call of HDSC Asset Management Company 0:12 12 seconds Limited. From the management team, we have with us Mr. Namit Manor, Mr. Nad 0:19 19 seconds Sarvala, and Mr. Samil Kupa. As a reminder, all participant lines will be in the listen only mode and there will 0:26 26 seconds be an opportunity for you to ask questions after the presentation concludes. 0:31 31 seconds Should you need assistance during this conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that 0:39 39 seconds this conference is being recorded. I now hand the conference over to Mr. Sil Kanuga who will give us a brief following which we will proceed with the 0:48 48 seconds Q&A session. Thank you and over to you sir. 0:52 52 seconds Yeah, thanks. Uh good evening everyone and uh thank you for joining this call. 0:56 56 seconds Uh we'll begin with an overview of the industry. So looking at the year gone by, Nifty50 ended down 5%. Uh through 1:05 1 minute, 5 seconds the year markets had to deal with multiple challenges stroke news flows. 1:09 1 minute, 9 seconds Uh global uncertainty around tariffs and trade, geopolitical tensions leading to volatility include oil prices etc. On 1:17 1 minute, 17 seconds top of this, we saw persistent SPI outflows which kept sentiment under pressure. So overall a fairly difficult 1:24 1 minute, 24 seconds environment for markets. What clearly stood out was the continued participation of domestic investors. 1:31 1 minute, 31 seconds Despite the volatility, they not only stayed invested but continued to repose their confidence in long-term India 1:38 1 minute, 38 seconds growth story and markets. In fact, many use this corrective phase as an opportunity to allocate more prudently 1:46 1 minute, 46 seconds and systematically rather than getting carried away by short-term market movements. Interestingly, if we look at 1:53 1 minute, 53 seconds the March quarter, the Nifty50 was down by 14.5%. 1:58 1 minute, 58 seconds The flows into equity oriented funds came in at around rupees 1340 billion compared to rupees 1888 billion in 2:07 2 minutes, 7 seconds December of 2025 quarter when nifty in fact was up by 6%. 2:13 2 minutes, 13 seconds SIP flows continued to inch up at a healthy pace. In March 2026, monthly SIP 2:20 2 minutes, 20 seconds collections touched an all-time high of rupees 321 billion, up 24% yearonear with 97 million contributing accounts. 2:31 2 minutes, 31 seconds For the full year, the industry across asset classes saw healthy net inflows of rupees 7.4 trillion. Equity oriented 2:40 2 minutes, 40 seconds funds continued to be the primary driver contributing close to rupees 4.9 trillion. ETFs witnessed strong inflows 2:49 2 minutes, 49 seconds of about rupees 1.8 trillion of which gold and silver ETFs combined attracted nearly rupes 1 trillion. On the fixed income side flows were relatively muted. 3:01 3 minutes, 1 second Net oriented funds saw inflows of rupes 66 billion. Liquid funds saw inflows of rupes 5 billion during the year. Let me 3:09 3 minutes, 9 seconds highlight an interesting data point here. This marks 14th consecutive financial year of positive net inflows 3:18 3 minutes, 18 seconds for the industry as a whole. Another important trend is growth in number of mutual fund investors. So it's not just 3:25 3 minutes, 25 seconds deeper wallet share from existing set of investors but also steady addition to new investors driving industry growth. 3:33 3 minutes, 33 seconds During the year 7.2 2 million new investors entered mutual funds, taking the total investor base to 61.4 million. 3:43 3 minutes, 43 seconds Participation from B30 locations also remains encouraging with over 40% of SIP flows now coming from these markets. We 3:52 3 minutes, 52 seconds now move to ask us overall QA aum grew by 20% yi to reach rupees 9.3 trillion 4:01 4 minutes, 1 second while equity oriented aum reach rupees 6 trillion. SIP and STP flows together 4:08 4 minutes, 8 seconds stood at rupees 48.8 billion in March of 2026 growing by 33% yearonear. Our total 4:17 4 minutes, 17 seconds accounts crossed 30 million and unique investors with us are now at 16.7 4:23 4 minutes, 23 seconds million an addition of 3.5 million over the year. To put that in context, industry as a whole added 7.2 million. 4:33 4 minutes, 33 seconds In terms of mix, direct plans continue to gain traction and now account for about 31% of our equity. AUM digital 4:42 4 minutes, 42 seconds adoption remains very strong with 97% of our transactions being digital. To zoom 4:48 4 minutes, 48 seconds in, this number was 81% 3 years back and 69% 6 years back. During the year, we 4:57 4 minutes, 57 seconds further strengthened our mutual fund offerings with launch of seven new schemes. Beyond mutual funds, we also made good progress in expanding our 5:05 5 minutes, 5 seconds alternative business with announcement of first closed of our private credit fund with IFC as a partner and anchor 5:12 5 minutes, 12 seconds investor. In our international business based out of Gift City, we launched two inbound funds during the year taking the 5:19 5 minutes, 19 seconds total now to five. On portfolio management services side, we are seeing encouraging traction. We were awarded two marquee mandates during the year. 5:28 5 minutes, 28 seconds One was from EPFO and the second one is from SPFO the seaman's provident fund organization both on fixed income. Now 5:37 5 minutes, 37 seconds we move to financials. Total revenue for the year was rupes 46.2 billion with revenue from operations at rupees 41.2 5:46 5 minutes, 46 seconds billion growth of 18% yearon year. Total expenses were rupes 9.1 billion. 5:52 5 minutes, 52 seconds Operating profit for the year came in at rupes 32.1 billion a yi growth of 18% with an operating margin at 35 basis 6:01 6 minutes, 1 second points of aum profit after tax stood at rupees 28.6 billion a yearon-year growth of 16%. 6:10 6 minutes, 10 seconds vote earlier today recommended a dividend of rupes 54 per share compared to rups 45 per share adjusted for bonus 6:17 6 minutes, 17 seconds issuance last year that translates to a payout ratio of 81% of course this is subject to shareholder approval thank 6:25 6 minutes, 25 seconds you very much uh we can open up for questions starting now thank you very much we will now begin with the question and answer session 6:34 6 minutes, 34 seconds anyone who wishes to ask a question may press star and one on the telephone. If you wish to remove yourself from the question queue, you may press star and two. 6:44 6 minutes, 44 seconds Participants are requested to use handsets while asking a question. 6:49 6 minutes, 49 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:56 6 minutes, 56 seconds Participants, you may press start and one to ask a question. 7:08 7 minutes, 8 seconds The first question is from line of Sukrit Patel from eyesight trade. Please go ahead. 7:13 7 minutes, 13 seconds Good evening to the team. I have two questions. My first question to Mr. 7:17 7 minutes, 17 seconds Munos is uh what are the key priorities for HDC AMC in the coming quarters? How do you plan to bring more retail 7:25 7 minutes, 25 seconds investor into mutual funds? strengthen distribution in smaller cities and leverage digital platforms to make 7:32 7 minutes, 32 seconds investing simpler and more engaging. I'm going to hear your insights on this. 7:36 7 minutes, 36 seconds That's my first question and I'll ask my second question after this. Thank you. 7:41 7 minutes, 41 seconds Sure. Uh thank you Sukit. Uh so as you can see over the last couple of years uh industry has grown uh from a strength to strength. For the last couple of years, 7:50 7 minutes, 50 seconds we are seeing a tremendous focus uh on on expanding the uh systematic book uh across all channels, across all 7:58 7 minutes, 58 seconds geographies, across all investor segments. And uh while the industry has grown, we have got our our fair share. 8:05 8 minutes, 5 seconds We continue to focus on that continue to serve investors across various channels through the physical uh branch network that we have where we have significantly 8:14 8 minutes, 14 seconds expanded in last couple of years and we will continue to evaluate opportunities on that side and on the other side uh continue to invest in our digital 8:22 8 minutes, 22 seconds capabilities uh both our uh the portal website as well as the app are bestin-class in the industry. uh if you 8:31 8 minutes, 31 seconds look at the transactions which used to be almost 40% in physical uh physically done five six years back are almost now 8:40 8 minutes, 40 seconds 97% or so get done uh digitally so we believe in what I call fidgetital uh 8:47 8 minutes, 47 seconds continue to expand our our physical base to serve our distributors our investors across the country and on the other uh 8:54 8 minutes, 54 seconds side best-in-class uh digital capabilities to serve our investors on the product side uh we have the I mean 9:03 9 minutes, 3 seconds as for the CV classification most of the categories that mutual fund house can have we are present in all of those categories. Our aspiration is to is to 9:11 9 minutes, 11 seconds keep growing our market share in all of those categories keep delivering uh uh good returns to the investors. They have more faith and then then we get more 9:20 9 minutes, 20 seconds money in those products and uh on the other side continue to build our our distribution capability over the next several years. uh apart from the mutual 9:29 9 minutes, 29 seconds funds we also see opportunities to grow the non-mutual fund side of the business which includes our PMS capabilities uh 9:36 9 minutes, 36 seconds we had some early wins uh u as as well as on the alternative side uh in the initial command similar has mentioned 9:45 9 minutes, 45 seconds about what we are doing on the private credit side uh on the category 2 AF on the fund of fund side and over a period 9:53 9 minutes, 53 seconds of time you will hear more from us on on that side The other opportunity I will highlight is on the international 10:00 10 minutes business. So we have a 100% uh fully owned subsidiary in gift city where we have five funds live over a period of 10:08 10 minutes, 8 seconds time. Uh we want to continue to build the product range and the distribution capability on that side both for inbound 10:15 10 minutes, 15 seconds money from global investors investing into India and outbound Indian investors investing globally. So some of these are 10:23 10 minutes, 23 seconds I would say that we'll continue to continue to focus. 10:28 10 minutes, 28 seconds Thank you. My second question to Mr. uh Sala is uh how are you approaching risk such as uh market volatility or any 10:37 10 minutes, 37 seconds regulatory compliances that keeps on changing over the time and uh rising cost while still ensuring profitability 10:45 10 minutes, 45 seconds remains steady and uh you know growth keeps on going from the company. Sure. So I'll uh take the cost question first. 10:54 10 minutes, 54 seconds So if you break down our costs essentially into two components employee costs and all other expenses on together. So on the employee cost front 11:03 11 minutes, 3 seconds u our excluding ESOPS our cost has grown by about 12 and a half% year on year and 11:10 11 minutes, 10 seconds if you take this over the last five years uh the CAGGR for employee costs uh again x EOP's non-cash charge is around 11:19 11 minutes, 19 seconds 13%. During that period our employee count has uh grown from 1,250 to around 11:26 11 minutes, 26 seconds 1,700 employees. uh similarly on the non-employee costs uh they have increased at a CG CAGR of about 13.5%. 11:36 11 minutes, 36 seconds over the last five years. Uh so while we don't give specific guidance uh these will broadly grow in line with the 11:44 11 minutes, 44 seconds business uh and the investments you are making across technology and people uh again if we step back and look at costs 11:53 11 minutes, 53 seconds uh relative to AUM over the last few years there has been a clear downward trend despite investing in talent building new 12:02 12 minutes, 2 seconds capabilities and factoring long-term investment initiatives like stock options we have improved improve overall efficiency. 12:10 12 minutes, 10 seconds So I think a focus uh is is not necessarily cutting cost but on managing them well while we continue to invest 12:17 12 minutes, 17 seconds for growth. Uh I think on risk management and volatility of course uh we have a team that that uh ensures that 12:24 12 minutes, 24 seconds they have the appropriate risk factors in place and we uh we sort of manage that very very actively across our compliance registries. 12:36 12 minutes, 36 seconds Thank you and best wishes. Thank you very much. 12:43 12 minutes, 43 seconds Ladies and gentlemen, you may press star and one to ask a question. 12:49 12 minutes, 49 seconds Next question is from line of Kushan Sha from the financial express. Please go ahead. Um hello. 12:58 12 minutes, 58 seconds Yes please. 12:59 12 minutes, 59 seconds Yeah. Uh so my question was on the EPFO and SPFO mandates that you said u that the EMC received. Uh is there any data on that? 13:12 13 minutes, 12 seconds So uh SPFO that we already started managing EPFO we are signing the agreement. So both of 13:21 13 minutes, 21 seconds them were part of a RFP that was issued and both of these were awarded to us. 13:28 13 minutes, 28 seconds Okay. Okay. Do you have any follow-up question? 13:36 13 minutes, 36 seconds Uh, no. Thank you. 13:40 13 minutes, 40 seconds Next question is from the man of Push Kumar from Magnus Health Investments. Please go ahead. Yeah. Hi. I'm audience. 13:49 13 minutes, 49 seconds Yes. Yes sir. Go ahead. 13:51 13 minutes, 51 seconds Okay sir. So Mr. My question is regarding the market share. So how do you see HDSC growing its market share over the next few quarters and what 14:00 14 minutes exactly are you planning to do to gain further market share in this industry sir? 14:05 14 minutes, 5 seconds So as I mentioned earlier that uh uh we have a good long-term track record across all strategies uh and on the 14:14 14 minutes, 14 seconds other side the work that uh we have been doing on the distribution side and uh given the product range the performance 14:21 14 minutes, 21 seconds track record uh the platform that we have over a period of time we I mean want uh the most optimized market share 14:31 14 minutes, 31 seconds across all products incrementally I mean what I mentioned earlier on both what we are doing on physical presence 14:38 14 minutes, 38 seconds relationships with all channels be it our mutual fund distributors tens of thousands of them across the country all 14:45 14 minutes, 45 seconds the initial distributors the aggregators uh all the banks where we have relationship and of course the fintech channel which has been uh growing quite 14:54 14 minutes, 54 seconds a bit over the last couple of years we continue to focus on on each one of them uh yeah I I think I some of the other things I've mentioned earlier. 15:06 15 minutes, 6 seconds Okay sir. One last question sir. Sorry. 15:10 15 minutes, 10 seconds Uh sir, how do you think artificial intelligence tools are going to affect the mutual fund industry and how do you see going ahead the role of mutual fund 15:18 15 minutes, 18 seconds distributor in raising up the AUM or NMC? So do you think there is any chance of disruption from AI or any clings from 15:26 15 minutes, 26 seconds that s anything which you see coming for the mutual fund industry maybe from the B2B side or maybe from the B2C side? Do you see anything like that? 15:37 15 minutes, 37 seconds So our our digital strategy is organized around becoming the digital AI val creator for every Indian. Uh our our 15:46 15 minutes, 46 seconds overall mission as an organization is to be the value creator for every Indian and the digital strategy is to be digital AI creator for every Indian. So 15:54 15 minutes, 54 seconds clear focus on three stakeholders our investors, our distribution partners and the uh LTFC group uh ecosystem. So the 16:03 16 minutes, 3 seconds approach is not to merely adopt technology but to use it to to strengthen our scale our efficiency our investor experience and I mentioned 16:11 16 minutes, 11 seconds earlier that 97% of the transactions are already digital but uh with the help of AI and all the digital tools we continue 16:19 16 minutes, 19 seconds to simplify our onboarding our discovery our engagement uh to drive the long-term participation 16:26 16 minutes, 26 seconds uh from I mean from everyone rather than just the transactional usage and uh We are clearly on a trajectory towards becoming a 100% digital transaction AMC. 16:37 16 minutes, 37 seconds Uh across the organization uh AI is being embedded uh as an operating layer 16:43 16 minutes, 43 seconds from marketing and client engagement to uh investment processes, risk management, compliance and u is like 16:53 16 minutes, 53 seconds acting as a force multiplier for our teams rather than a replacement. And this allows uh faster decision making. 17:01 17 minutes, 1 second It allows better risk oversight and of course higher uh productivity and uh all 17:08 17 minutes, 8 seconds of this is built on a robust and cloud-based technology foundation. Uh we are very particular about strong data 17:16 17 minutes, 16 seconds architecture and a very very rigorous cyber security uh standards. To summarize, I would say uh the objective 17:24 17 minutes, 24 seconds is clear to build scalable um defensible digital and AI capabilities 17:31 17 minutes, 31 seconds uh that enhance the investor outcome, improve operating leverage and uh create a durable long-term competitive mode for SDFC. 17:42 17 minutes, 42 seconds We we have announced today that u board has approved the appointment of Mr. Mr. 17:48 17 minutes, 48 seconds Rajan Anandan as an inviteee and external expert on the technology committee for a three-year term. Uh Mr. 17:56 17 minutes, 56 seconds Anandhan is the currently a managing director at P15 partners. Uh he brings a deep global technology leadership 18:04 18 minutes, 4 seconds experience. Uh he's worked earlier with uh and has led Google in India and Southeast Asia. Uh he had senior roles 18:13 18 minutes, 13 seconds at Microsoft and Dell and was a partner at Mckenzie. So I think there this stands the board's technology oversight 18:21 18 minutes, 21 seconds and provides an independent and high quality guidance uh as as our endeavor is to deepen our focus on digital and AI transformation. 18:34 18 minutes, 34 seconds All right sir. Thank you sir. Thank you. All the best. 18:39 18 minutes, 39 seconds Thank you. Next question is from line of Abiji from Kodak Securities Limited. Please go ahead. 18:47 18 minutes, 47 seconds Yeah, good evening everyone. Uh I hope I'm audible. uh my first question goes to you know pick up from the uh opening 18:54 18 minutes, 54 seconds remarks on u investor behavior uh especially in March but broadly given the volatility in the preceding year um 19:03 19 minutes, 3 seconds like we we don't see any uh like major change in trends uh on the reported numbers but maybe under the hood have 19:11 19 minutes, 11 seconds you seen any uh change in behavior in terms of ticket sizes uh or let's say you know let's say self-directed 19:18 19 minutes, 18 seconds customers um their share is kind of coming down in overall flows. Anything that you can highlight beyond the reported numbers? 19:26 19 minutes, 26 seconds So uh I'm sure you have seen the uh the March uh industry flow data and uh the 19:33 19 minutes, 33 seconds numbers really speak for themselves and uh if you look at the book at the start of the year versus now uh in the context 19:42 19 minutes, 42 seconds of how markets have behaved what Simult upon earlier one thing is quite clear that domestic households are 19:49 19 minutes, 49 seconds increasingly investing with a long-term mindset and they are beginning to appreciate the benefits of rupee. cost 19:56 19 minutes, 56 seconds averaging uh in fact feedback from all the distribution partners uh I engage with uh it clearly suggests that many 20:04 20 minutes, 4 seconds investors are comfortable with market corrections because it allows them to accumulate more units. So credit to our our industry campaigns, credit to our 20:12 20 minutes, 12 seconds regulators, credit to all the distribution partners on the ground and the whole ecosystem that uh more and 20:20 20 minutes, 20 seconds more investors are looking at investing in a disciplined manner with more long-term orientation. Um you know 20:27 20 minutes, 27 seconds interesting part uh I was looking at the data today that if I remember correctly highest flows in equity funds equity and 20:36 20 minutes, 36 seconds equity oriented funds hybrid funds have come in the month of March where we had significant global uh geopolitical volatility. 20:47 20 minutes, 47 seconds And uh the other month where we had higher flows was in the month of July when India got hit with additional 20:54 20 minutes, 54 seconds tariffs by US and that clearly shows that in extreme volatility and when 21:00 21 minutes markets uh were not doing well. Uh the Nifty and the other indices were down. 21:07 21 minutes, 7 seconds Investors use that an opportunity to put more money to work. I mean that clearly shows a very mature behavior of of 21:15 21 minutes, 15 seconds investors during the year. SIP book of the industry has grown by 6,000 crores. 21:21 21 minutes, 21 seconds Uh you would have seen our number on the systematic book the way it has grown during the year. So I think that that 21:28 21 minutes, 28 seconds that gives us quite a bit of comfort. I mean I I I would still say I mean uh on the on the cautionary note that uh we 21:37 21 minutes, 37 seconds have to see the investor behavior. If markets stay under pressure for a much longer period while over the last 18 months or so we have seen good 21:46 21 minutes, 46 seconds volatility and investors have behaved in a highly mature manner but I mean it is always tested over time but for now I 21:54 21 minutes, 54 seconds can say the trend is clearly encouraging. 21:58 21 minutes, 58 seconds Got it. Uh just one small followup namit there. Uh would you say that uh this uh like contrarian uh approach uh is true 22:06 22 minutes, 6 seconds uh across both the assisted as well as the self-directed channel or is there like a marked difference between the two? 22:15 22 minutes, 15 seconds I think across both. Yeah. Yeah. Across. 22:18 22 minutes, 18 seconds I mean you can see the way uh number of contributing accounts have increased during the year. On the SIP side, uh at 22:26 22 minutes, 26 seconds the beginning of the year, there were 81 million SIP contributing accounts that M publishes and that number closed at 97.2 22:36 22 minutes, 36 seconds million uh as of March 26. So there is an increase of 16 million accounts and uh as you mentioned in the beginning uh 22:45 22 minutes, 45 seconds rem opening remarks that uh this year u markets have not done well. 22:54 22 minutes, 54 seconds Got it. Uh I had one question on u like when I look at the share of HTFC bank u in the mix of equity that has kind of 23:03 23 minutes, 3 seconds come down. Any uh thoughts on that number please? 23:07 23 minutes, 7 seconds So uh the bank share and the distribution pie decreasing I don't think that's the right way of looking at it. What we are seeing is broadbased 23:16 23 minutes, 16 seconds growth uh across all our distribution channels and I mentioned in the beginning itself that uh we are focused on all channels that includes uh all the 23:26 23 minutes, 26 seconds banks uh national distributors uh our mutual fund distributors uh fintexs direct all the registered advisors etc. 23:34 23 minutes, 34 seconds So it's really a case of the overall opportunity expanding rather than any other channel losing out. Uh bank of 23:42 23 minutes, 42 seconds LDFC bank remains a very important partner for us and the potential within that uh channel is very significant. We 23:49 23 minutes, 49 seconds continue to work very closely with the bank and there is clear alignment at the top. Uh all my interactions uh with Shashi and team reinforces that point. 23:59 23 minutes, 59 seconds Uh there are changes that take time to play through but we are confident that results will follow. Um you know that 24:06 24 minutes, 6 seconds LDFC bank has always followed an open architecture approach. This occasionally results in eventdriven or seasonal 24:13 24 minutes, 13 seconds variation particularly in quarters when peers launch a large NFO or and the parent bank is actively involved that 24:21 24 minutes, 21 seconds can lead to shorter movement in the flow market share. uh importantly for us uh particular thing that uh we monitor 24:29 24 minutes, 29 seconds closely is the quality of flows and and the SIP share through the bank that continues to remain strong and and which 24:37 24 minutes, 37 seconds is what will the durable layum over a period of time. I should also mention uh about the relationship with SDFC 24:44 24 minutes, 44 seconds securities uh their share of flow with the SDFC security uh securities continue to remain very encouraging. So overall I 24:52 24 minutes, 52 seconds mean I remain very constructive on the opportunity it presents over medium to long term. 24:59 24 minutes, 59 seconds Got it. Just one small uh data point question. It's possible to give some sense on what would be the contribution 25:06 25 minutes, 6 seconds of close or SIP from fintech press that thank you. 25:13 25 minutes, 13 seconds Contribution of SIP from fintex you are saying you are asking for total. So first like on a flow basis how much money is comes from those set of guys. 25:27 25 minutes, 27 seconds We can get back to you with this data point. Okay. Sure. Thank you. Thank you. 25:36 25 minutes, 36 seconds Next question is from Nanovar Lada from JP Morgan. Please go ahead. 25:41 25 minutes, 41 seconds Uh hi uh good evening. Uh sorry I missed a little bit of your call because uh you know your sister concern was had a call 25:49 25 minutes, 49 seconds running parallelly. So um you I wanted to just uh if you've not given can you 25:56 25 minutes, 56 seconds spell out the asset class wise uh yields and uh this quarter I think on a blended basis yields are slightly down. 26:06 26 minutes, 6 seconds uh uh so is that uh mainly because of mix or uh is there some internal sort of 26:14 26 minutes, 14 seconds change in in the yield. So that would be uh my my first question. Second uh on uh 26:21 26 minutes, 21 seconds expenses admin and other opex has seen a slight increase nothing too big but uh you know what sort of run rate uh are we 26:30 26 minutes, 30 seconds looking at over here? Uh uh yep. Uh and uh uh and uh also on your 26:39 26 minutes, 39 seconds uh flow versus book uh market share uh how has that trended uh in 4Q is uh are 26:48 26 minutes, 48 seconds we sort of broadly uh flowshare is beating uh book uh share? Uh yeah those three would be those would be my three questions. Thanks. 27:00 27 minutes uh SH. So on the on the yields for the different uh classes, equity was around 27:07 27 minutes, 7 seconds 56 basis points, debt uh 28 and liquid 13 uh and blended for the year was 45. 27:17 27 minutes, 17 seconds There is actually no yield uh compression in the quarter. This quarter, the Q4 is a 90-day uh quarter 27:25 27 minutes, 25 seconds and Q3 is a 92 days quarter. So that if you simply divide without adjusting for number of days then you may have come to 27:32 27 minutes, 32 seconds that number but the yields are are flat of them. Got it. Got it. 27:40 27 minutes, 40 seconds Mua just one thing this 56 of equity that NZA touched upon that includes equity index funds. If you take that out 27:48 27 minutes, 48 seconds if you look at only actively managed equity and equity oriented it is uh 60 61 business basis points. That's right. 27:56 27 minutes, 56 seconds Y on your third question on expenses, it's I mean it's just BAU there's nothing uh 28:04 28 minutes, 4 seconds it's up by 7% so I really don't know uh I was looking at it more on a quarter quarter basis 28:12 28 minutes, 12 seconds so yeah quarter on quarter other expenses of 8% so in absolute terms 28:19 28 minutes, 19 seconds absolute terms like a really small it's not it's not too big yeah so Nothing nothing nothing special 28:27 28 minutes, 27 seconds other even the CSR and all these things no because those things which are linked directly like a royalty CSR they are linked with our profits revenues so as 28:35 28 minutes, 35 seconds that goes up by default these are like mandatory stroke statutory expenses fantastic I would say maduker that uh we 28:43 28 minutes, 43 seconds have always said that we run a very tight ship very very tight ship I mean look at the u look at our expense as a 28:51 28 minutes, 51 seconds basis point of our we would be uh one of the best run not only in India but but in the world and uh we are in a growth 29:00 29 minutes business and I would emphasize uh we are at very early stage of financialization of savings in India. Uh we want to make 29:08 29 minutes, 8 seconds the most of the opportunity which lies ahead. We are expanding our footprint uh on the physical side. We are expanding 29:17 29 minutes, 17 seconds our our digital capabilities uh the investment in AI uh in our investment capability product capability. We are 29:26 29 minutes, 26 seconds very excited from a long-term perspective on the alternatives. It requires upfront investment in terms of the uh kind of talent we have have we 29:35 29 minutes, 35 seconds have got onboarded uh on the PMS the kind of talent we have onboarded the on the international side the setup that we 29:42 29 minutes, 42 seconds have put in place all of this will result in in in in the business over a period of time but we we shouldn't shy 29:50 29 minutes, 50 seconds away from investing in all of these opportunities. 29:56 29 minutes, 56 seconds Yep. Yeah. No, it's also a very small scale of our Yeah. 30:02 30 minutes, 2 seconds change. Yeah. It's not a very Yeah. By the way, even given the scale of our business, few crores here and there. Yeah. 30:08 30 minutes, 8 seconds Be it like be technology, be it in people, these are like foundational blocks for long-term growth and should not shy away from that. Yeah. 30:21 30 minutes, 21 seconds Yep. Yep. uh the flow versus book uh market share and then also I mean if I can add in one more question uh see uh 30:30 30 minutes, 30 seconds we are I think it seems that we're going a little bit slower on the entire SIF 30:37 30 minutes, 37 seconds uh launch so what are your thoughts over there and u you know what what uh uh 30:43 30 minutes, 43 seconds when should we expect uh sort of any action over there u and sort of your buildup on 30:52 30 minutes, 52 seconds alternatives if you could give some commentary around that. Yeah, that book so o overall close are uh 30:59 30 minutes, 59 seconds higher than the book share uh that much I can tell you and we remain focused as I said across all products across all 31:06 31 minutes, 6 seconds channels across all geographies and and we continue to uh to to uh remain 31:13 31 minutes, 13 seconds focused on that on on your question on SIF. So uh we have secured all uh necessary regulatory approvals. 31:21 31 minutes, 21 seconds From our standpoint getting the approval is just the starting point. Real question is how do we participate in a 31:29 31 minutes, 29 seconds way that is consistent with our philosophy and for us that means being very clear on two things. One the 31:36 31 minutes, 36 seconds product has to be investment and two it has to solve for a genuine client need rather than just occupy shelf space. So we are not approaching this as a race. 31:48 31 minutes, 48 seconds Uh in a category like this being early doesn't necessarily create an advantage. 31:53 31 minutes, 53 seconds In fact the first few products will end up shaping investor expectations for the entire segment. So we would much rather 32:00 32 minutes be thoughtful and and deliberate and and that has always been always been our our view on all products. The good part is 32:09 32 minutes, 9 seconds we aren't we are not starting from a scratch right? I mean we already have the underlying capabilities and what capabilities are needed? You need 32:16 32 minutes, 16 seconds investment management capability, you need risk management capability and you need product management capability and of course on the other side we have the 32:24 32 minutes, 24 seconds best distribution capability. So the team is working on designing couple of products in this space which are uh 32:31 32 minutes, 31 seconds differentiated. So in terms of impact I would view this as more strategic than immediate. It's not going to move the 32:38 32 minutes, 38 seconds needle overnight. uh the category itself will take time to develop and investor understanding will have to build but 32:45 32 minutes, 45 seconds over a period of time having a wellthoughtout SIF offering becomes important if you want to be seen as a 32:52 32 minutes, 52 seconds complete investment platform and we have already mentioned we want to be the best uh solution provider so the product will 33:00 33 minutes be there but uh we are I mean always be more thoughtful and deliberate and will always be Got Understood. Uh all the best sir. 33:13 33 minutes, 13 seconds Thank you. 33:14 33 minutes, 14 seconds Thank you. Next question is from Dana of Mahik from MK Global. Please go ahead. Yeah. Hi, thank you for the opportunity. 33:23 33 minutes, 23 seconds Uh my first question is on the regulatory change with respect to PD. So uh I'm sorry if I'm asking the question 33:30 33 minutes, 30 seconds again maybe but if you can just help us with u any update on uh how are you looking at um the change in DR and 33:37 33 minutes, 37 seconds whether you have uh kind of um gone into any negotiations with the distributors that was that will be my first question 33:45 33 minutes, 45 seconds uh second is if I look at the unique investor market share that has increased to around 27%. U could you give some 33:53 33 minutes, 53 seconds color on how um on particularly which geographies are driving this uh market share creation and through through which 34:02 34 minutes, 2 seconds channels u would be uh kind of the major driver and third question would lastly 34:09 34 minutes, 9 seconds be on whether you are planning to come out with any NFOS in in future. Yeah. Uh 34:17 34 minutes, 17 seconds so on the new PE regulations that you asked so we have a new terminology in the industry now it's called BER the 34:25 34 minutes, 25 seconds base expense ratio uh it is still early days and you will hear more from us over time on how we propose to deal with the 34:32 34 minutes, 32 seconds impact including changes in distribution commission our margins and the overall impact on the ecosystem. Uh this time the impact is on select few schemes. 34:42 34 minutes, 42 seconds Larger strategies are the ones seeing the impact and smaller strategies are even seeing some degree of markup. Uh so 34:49 34 minutes, 49 seconds let me break this into two parts. Uh one on the existing book and the other one on the new floor. Uh so starting with 34:56 34 minutes, 56 seconds the existing book uh for us the gross impact is about three to four basis points and our approach is to largely 35:03 35 minutes, 3 seconds offset this through optimization of commission structures. Uh along with student management of both the direct as 35:10 35 minutes, 10 seconds well as indirect cost. So overall the targeted impact on our PNL should not be material. Uh I know the obvious question 35:18 35 minutes, 18 seconds is around uh quantification of the same but still early for us to give a precise number. Having said that uh you would 35:26 35 minutes, 26 seconds appreciate we have navigated similar changes in the past and I would point you to look at how we have managed 35:33 35 minutes, 33 seconds outcomes over time. Uh uh second part is coming uh on the flows. So coming to flows there are couple of changes here 35:41 35 minutes, 41 seconds as well. Firstly the earliest five basis points available uh in U of exit load is now removed which is a straight 35:50 35 minutes, 50 seconds reduction. uh and secondly there is a shift in the structure post April 1, 35:56 35 minutes, 56 seconds 2026. So earlier it was TER which including GST on distribution commission 36:03 36 minutes, 3 seconds and other expenses while GST on management fees was in addition to PER 36:11 36 minutes, 11 seconds whereas now we move to a base expense ratio framework which GST kept completely outside of PER. So yes, we 36:19 36 minutes, 19 seconds will need to make suitable adjustment to ensure margins evolve in line with uh our expectations. 36:31 36 minutes, 31 seconds Yeah, thanks that answers the question. 36:34 36 minutes, 34 seconds And secondly on the unique investor market share increase like what would be the u kind of geographies driving would 36:42 36 minutes, 42 seconds be the tier 2 tier three markets and what would be the uh channel through which these customers are largely coming in. 36:51 36 minutes, 51 seconds So uh I mean we get money from almost 98% or so of zip codes uh from the country 36:59 36 minutes, 59 seconds uh I mean the the share of new investors I think have been coming from like almost all geographies 37:07 37 minutes, 7 seconds uh the P30 town uh as a partners in our industry beyond the top 30 towns uh have 37:15 37 minutes, 15 seconds been adding lot of new uh investors uh and then and we have been a beneficiary of that and yeah I mean the fintech is a 37:23 37 minutes, 23 seconds channel where lot of new accounts on the SIP side getting opened up where we have a very decent share and of course all 37:32 37 minutes, 32 seconds the other channels uh continue to see expansion of uh new unique investors. 37:41 37 minutes, 41 seconds Okay. Okay. And um uh are you planning out for any MFOs in the near future? 37:49 37 minutes, 49 seconds Uh I mean we We look at some product gap but overall I mean if you look at our uh product bouquet uh portfolio is fairly 37:57 37 minutes, 57 seconds wellrounded. They are present across most of the key categories. So there isn't a need to keep adding products for the sake of it. I think the the bigger 38:05 38 minutes, 5 seconds opportunity for us actually is within the existing lineup. So there are funds which have delivered steady very consistent outcome for decades but 38:14 38 minutes, 14 seconds haven't necessarily been in the top bracket in terms of visibility and and the AUM that they have. So a lot of our effort is going into sharpening these 38:23 38 minutes, 23 seconds and moving them up the curve. Uh on the new launches we'll stay very selective. 38:28 38 minutes, 28 seconds If you do something in the thematic or sector space or in the passive space, it will be backed by strong conviction from the investment team and a and a clear 38:37 38 minutes, 37 seconds market opportunity otherwise we are we are quite comfortable with the portfolio that uh we have and beyond I mean as I 38:46 38 minutes, 46 seconds mentioned earlier beyond mutual funds uh from an overall platform perspective we continue to expand on the BMS, EF 38:53 38 minutes, 53 seconds international cube city uh all of those opportunities to cater to a wider set of client needs. 39:03 39 minutes, 3 seconds Got it. Got it, sir. Thank you so much. Thank you. 39:08 39 minutes, 8 seconds Thank you. Next question is from Nanos from Namora. Please go ahead. 39:15 39 minutes, 15 seconds Hi, thank you so much for the opportunity. Uh I wanted to understand uh flow market share uh qualitatively. 39:22 39 minutes, 22 seconds uh while I understand we have a robust track record of investment performance but uh uh the our calculations suggests 39:31 39 minutes, 31 seconds that in Q4 the flow market share has been lower than uh the flow market share that was in Q3. Uh can you help uh us 39:41 39 minutes, 41 seconds understand uh the reasons behind it? No I I don't think so. How are you arriving at? 39:49 39 minutes, 49 seconds No actually you would have missed the dividend payout. See most of our schemes pay out dividend in the last quarter. 39:54 39 minutes, 54 seconds You would have taken dividend payouts as redemptions. ID IDCW in the the the way it is now called 40:03 40 minutes, 3 seconds investors who are subscribed for the IDCW scheme for them it is uh that would have led to your computation but that's not the data point. 40:12 40 minutes, 12 seconds Okay, understood. Uh and second question was in terms of the performance uh of schemes in one year bucket. uh actually 40:22 40 minutes, 22 seconds except uh midcap and value category uh within the equity oriented schemes uh 40:29 40 minutes, 29 seconds the scheme performance and the rank uh of HDFCMC uh among the industry players has uh deteriorated 40:37 40 minutes, 37 seconds uh c can you uh help me understand how uh you know how why would what was the 40:45 40 minutes, 45 seconds reason behind it and how are we uh you know trying to improve the performance No, not at this. In fact, uh we continue 40:54 40 minutes, 54 seconds to be in top two quartiles across most of the categories across like time periods including uh longerterm 41:02 41 minutes, 2 seconds performance uh and large number of star rated four and five star by value research. Uh as I said flow market share 41:10 41 minutes, 10 seconds remains better than the book market share. The team is clearly among the most experienced uh in the top tier. The 41:18 41 minutes, 18 seconds investment philosophy or style has stood test of time has delivered u uh you know best-in-class performance over a long 41:26 41 minutes, 26 seconds period of time. There is uh enough and more data now available on the flows and that does suggest continuing trend in 41:33 41 minutes, 33 seconds our favor. And uh finally let me leave you with one thing. Uh investors as well 41:40 41 minutes, 40 seconds as distributors did not look at uh fund performance over one or two quarters. uh as you move right on the timeline graph, 41:48 41 minutes, 48 seconds we stand out clearly and there's more and more appreciation of a long-term track record of alpha generation uh 41:56 41 minutes, 56 seconds across our strategies. uh if I remember correctly 12 or 13 of our funds have got a track record over 15 years and several 42:04 42 minutes, 4 seconds of them going back 20 or 25 or 30 year plus track record of alpha generation and investors distributors they all 42:13 42 minutes, 13 seconds appreciate um the kind of long-term track record that we have got. 42:20 42 minutes, 20 seconds Understood. Thank you so much. Uh this is the last clarifying question. Uh you highlighted that the impact on yields uh 42:28 42 minutes, 28 seconds on two fronts existing book and new flows. Uh existing book you highlighted that there will not be any material impact and on new flows uh you said that 42:37 42 minutes, 37 seconds five basis point uh in le of uh exit load. Um so uh overall on new flows 42:44 42 minutes, 44 seconds there will be five basis point impact is what uh no no uh no no no no uh so the earlier 42:53 42 minutes, 53 seconds five basis point available in li of exit load is now removed. So that will be a straight reduction uh from the 43:01 43 minutes, 1 second distribution commission right because this was paid out as as the uh commission. Okay. 43:08 43 minutes, 8 seconds Yeah. So the new commission that we have published takes care that factors that into account and thereby we have kind of come out with new commission structure which is lower to that extent. 43:19 43 minutes, 19 seconds Understood. So there is uh overall no material impact on P&L. That is what we are striving for. 43:26 43 minutes, 26 seconds Okay. Thank you so much sir for answering my questions. Thank you. 43:32 43 minutes, 32 seconds Thank you. Next question is from the line of praise chain from Motil Financial Service. Please go ahead. 43:41 43 minutes, 41 seconds Yeah. Hi. Uh just one question on the So if you look at the top three schemes for us, they accounts for you know a significant portion of the equity side 43:51 43 minutes, 51 seconds probably you know closer to about 50% of equity plus hybrid together. So you know and given that the smaller schemes would 44:00 44 minutes have related more advantage uh in the new TR structures uh do you think that that can be a strategy for us where we 44:07 44 minutes, 7 seconds kind of push these more uh the smaller category product smaller sized uh schemes to kind of protect our as well 44:15 44 minutes, 15 seconds and also from a u you know diversification of a perspective 44:22 44 minutes, 22 seconds advantage to whom fresh I mean it is advantageous to investors. We exist for our investors 44:29 44 minutes, 29 seconds and as the scheme given the telescopic pricing as the schemes bigger you have a 44:36 44 minutes, 36 seconds lower TR and that much of additional returns baked in for the investor and I feel very happy for them. Uh over a 44:44 44 minutes, 44 seconds period of time I think people underappreciate this aspect. 44:49 44 minutes, 49 seconds uh one if you look at the long-term track record of larger schemes um I think that has been that has been 44:57 44 minutes, 57 seconds outstanding and on the other side uh as the as the TER uh has the impact from 45:03 45 minutes, 3 seconds the telescoping pricing investor tend to gain and ultimately I mean the fate of our industry is decided by the investors 45:12 45 minutes, 12 seconds and if they make better returns good for us Okay. Uh the other question was on the 45:20 45 minutes, 20 seconds ease on the AIS and the PMS group. If you could spell that out for us. Uh so it's kind of easier for us to think about what kind of incremental revenue 45:29 45 minutes, 29 seconds contribution that can come in from uh these two products uh over the over the next uh next few years. 45:37 45 minutes, 37 seconds So on the alternative business uh marginal premium to our equity margins on the PMS side uh pure discretionary is 45:45 45 minutes, 45 seconds in line with equity margins the nondiscretionary uh particularly the EPFO and SPFO kind 45:54 45 minutes, 54 seconds of India uh you know it is mandates and among the most prestigious and very tightly contested opportunities. So we 46:02 46 minutes, 2 seconds are honored to have been selected. uh that said this is a segment that operates under very very tight economics. 46:10 46 minutes, 10 seconds Um so when you say this is these are the nets right you know acts of distribution uh distribution income distribution 46:19 46 minutes, 19 seconds right and just on the guidance on uh expense growth for 27 and 28 anything 46:27 46 minutes, 27 seconds that you can guide on what kind of expense growth we should look at on an absolute basis u that would be great 46:35 46 minutes, 35 seconds we don't uh give out guidance uh generally and I I think I I said one of the previous questions that if you look 46:42 46 minutes, 42 seconds at our last five CAGR of employee costs and other expenses it's been around the 46:48 46 minutes, 48 seconds 13% mark uh and we and I think you heard also say that we focus on cost at the 46:55 46 minutes, 55 seconds same time we are mindful of the opportunity ahead of us in terms of growth and we keep investing around it there's no specific guidance we 47:03 47 minutes, 3 seconds generally give out on cost got that and last question anything any color that you want to give on how the 47:11 47 minutes, 11 seconds uh SIP trajectory has now is there any change because obviously March data was good and probably was because of you 47:18 47 minutes, 18 seconds know some rollover effect of February uh but any uh any color on how the book has 47:25 47 minutes, 25 seconds been progressing and also uh any difference between how the direct channel versus assisted channel uh is 47:33 47 minutes, 33 seconds kind of is kind of seeing differential trends between uh the SIPS that they're generating. 47:42 47 minutes, 42 seconds uh I mentioned earlier I gave the uh numbers in terms of the SIC contributing accounts. We started the year at 81 47:49 47 minutes, 49 seconds million uh in March 25 and closed the year at 97.2 million. So increase of 16 47:56 47 minutes, 56 seconds million accounts in a year where markets were down and in the last quarter of the 48:03 48 minutes, 3 seconds financial year where we had significant volatility uh particularly in the month of March and uh we not only closed with uh 48:12 48 minutes, 12 seconds highest ever SIP monthly flow but we also had uh relatively higher uh the 48:19 48 minutes, 19 seconds overall flow into equity and equity oriented funds. I mean that just reflects the maturity of individual investors. 48:28 48 minutes, 28 seconds uh the I mean there there's more stickiness of investor behavior and uh reinforces the long-term nature of SIB 48:36 48 minutes, 36 seconds participation and we are seeing that across both I mean direct as well as uh distribution distributor led over a 48:44 48 minutes, 44 seconds longer period of time um I think M has published his data some time back that uh uh the longevity of investors has 48:54 48 minutes, 54 seconds been greater uh with those who have come through distrib contributors uh because there is like more handholding versus the direct investors. 49:04 49 minutes, 4 seconds Uh in last couple of years we have seen very significant increase in investors who have invested directly. Uh last 49:12 49 minutes, 12 seconds couple of quarters notwithstanding the volatility numbers have been encouraging but we have to see that trend uh observe 49:19 49 minutes, 19 seconds that trend over a longer period of of time. 49:23 49 minutes, 23 seconds We continue to as a house and as an industry as a large player in the industry continue to focus a lot on 49:30 49 minutes, 30 seconds investor uh awareness campaigns uh both physically and digitally. In fact as a house we have been very passionate about 49:38 49 minutes, 38 seconds uh investor education campaigns uh across the country and keep highlighting to investors that uh rupee cost 49:46 49 minutes, 46 seconds averaging works in your favor. Uh think long term don't get swayed by the volatility. 49:52 49 minutes, 52 seconds uh stay true to your goals, focus on the goals rather than be short-term market movement and I think yeah I mean those 49:59 49 minutes, 59 seconds efforts are really paying off uh and and we hope that investors will continue to continue to maintain this disciplined way of investing. 50:12 50 minutes, 12 seconds Thank you so much. 50:17 50 minutes, 17 seconds Thank you. Next question is from man of supratim data from Jeffrey's India. Please go ahead. 50:24 50 minutes, 24 seconds Thanks for the opportunity. Most of my questions have been answered but um you know it was verying to hear the feedback on you know how investors have behaved 50:32 50 minutes, 32 seconds in March. Just wants to understand uh you know is there some color around you know when the lumpsum flows or you know 50:40 50 minutes, 40 seconds the additional flows that came in during March or during the market correction was it from new investors or existing investors putting in more uh money into 50:49 50 minutes, 49 seconds the existing fury. If you could give some color there that would be helpful. Thank you. 50:55 50 minutes, 55 seconds Sure. In fact, you know, interesting part uh is a larger part of uh flows 51:03 51 minutes, 3 seconds into equity and equity oriented funds are coming in the form of SIPs. 51:08 51 minutes, 8 seconds Uh and uh they are relatively more sticky. uh predicting lump some flows 51:16 51 minutes, 16 seconds have not been uh easy but uh and then and and there is some some I would say 51:22 51 minutes, 22 seconds variability in that but uh the interesting trend that I talked about earlier that two particular months where 51:30 51 minutes, 30 seconds there was volatility and and more FBI selling uh I think it was month of July last calendar year and the month of 51:39 51 minutes, 39 seconds March uh in 26 both the both the month saw higher flows on a relative basis 51:46 51 minutes, 46 seconds versus uh I think it was May last year where PI turned buyers and and uh 51:56 51 minutes, 56 seconds markets were volatile but but were better and we saw lower flows. So maybe there is a contrarian behavior among the 52:05 52 minutes, 5 seconds investors who are investing in a in a lumpsum manner trying to take advantage when market is down while uh waiting on 52:15 52 minutes, 15 seconds the sidelines or booking little bit of profit when market is up. 52:22 52 minutes, 22 seconds Understood. Absolutely. Thank you. Thank you. 52:26 52 minutes, 26 seconds Thank you. Next question is from land of the panjan gosh from city. Please go ahead. 52:34 52 minutes, 34 seconds Hi, good evening. Uh first two questions from my side. Uh first uh you quantified the impact uh of this uh new base deer 52:43 52 minutes, 43 seconds and other regulations on at a gross level and also the strategies in terms of distributor commission cuts that you might undertake going ahead. I just 52:52 52 minutes, 52 seconds wanted to understand that you also mentioned that are there uh nondistributed costs and other overhead rates also that you can manage. So just 52:59 52 minutes, 59 seconds wanted to understand I mean is there uh uh I mean is there a thought process around your RTA payouts and uh when do 53:07 53 minutes, 7 seconds the renegotiations really happen and uh do you think that at least for the next two to three year perspective there is any scope or headroom available on that 53:15 53 minutes, 15 seconds side uh to curtail cost. Uh the second question was on the uh was on the uh uh 53:23 53 minutes, 23 seconds unique investor count. Obviously your market share has expanded rapidly and it kind of showcases uh maybe a lot of new customers coming in through the fintech 53:31 53 minutes, 31 seconds channels given that they are probably the largest origin generators of new customers. uh now given this current market downturn and maybe the ongoing uh 53:40 53 minutes, 40 seconds uh pain in the broader Indian equities over the last many quarters now I mean uh two things one is uh how is the 53:47 53 minutes, 47 seconds customer wallet really divided between different players on these platforms I mean uh have you guys done any study on that and second is in terms of the 53:55 53 minutes, 55 seconds customer behavior during this u uh current downturn I mean any difference between the uh more assisted channels 54:02 54 minutes, 2 seconds and let's say the DIY sort of channels uh out Okay. Uh yeah, those are the questions. 54:08 54 minutes, 8 seconds So, a couple of questions. First on the uh expenses on the fund side. So, I think I mentioned in the context of 54:16 54 minutes, 16 seconds operating expenses of the AMC that we run a very tight ship. I can say the same about the fund expenses also. We 54:23 54 minutes, 23 seconds try to optimize it for our for our investors uh across all the cost that we have while ensuring that they get 54:31 54 minutes, 31 seconds best-in-class service. um uh won't comment more on that. Uh the second question was on the way we have been 54:39 54 minutes, 39 seconds adding the unique investors and from the presentation you can see that u the penetration which was uh 17.6% 54:49 54 minutes, 49 seconds in March 23 has gone up to 27% in March 26. 54:55 54 minutes, 55 seconds uh over the last three financial years uh we would have added uh almost 10 55:03 55 minutes, 3 seconds million investors 1 cr new unique investors to to the in the fund house so 55:10 55 minutes, 10 seconds uh it's been a very interesting good journey for us I think reflection of um the investment performance reflection of 55:19 55 minutes, 19 seconds all the investments that uh we have been making and on the distribution side uh and of course the the reflection of the 55:27 55 minutes, 27 seconds the uh brand and and the franchise uh and we continue to remain focused on on 55:33 55 minutes, 33 seconds that. Uh your other question was on u fintech as a channel right uh our share 55:40 55 minutes, 40 seconds in the fintech it was uh yeah so the question was more on you 55:48 55 minutes, 48 seconds know the let's say the wallet share of a customer how that would be divided between you and other players when they're dis you know deciding on let's 55:55 55 minutes, 55 seconds say uh allocation through the fintech channel uh and in that regard also how their behavior has been versus let's say the assisted channels during discounted 56:04 56 minutes, 4 seconds So I mean as I said that our flow share uh through the fintech channel is also higher than the bookshare. So that 56:12 56 minutes, 12 seconds reflects uh uh you know I think a strong presence on on their on their platforms. 56:18 56 minutes, 18 seconds Our fios also I think this year we have moved up from 2.3 cr folios to uh 3 cr 56:26 56 minutes, 26 seconds fio. So 70 lakh followers have got added uh in in last uh one year or so and uh 56:34 56 minutes, 34 seconds while we have added around uh 35 lakh new investors. So investors are are invest I mean every investor is on an 56:43 56 minutes, 43 seconds average investing in in more than one product of of ours 56:52 56 minutes, 52 seconds and uh sorry but if you can give some color on the customer behavior of this uh on these channels versus let's say 56:59 56 minutes, 59 seconds assisted channels in the last two or three months. 57:03 57 minutes, 3 seconds Sure two and three month I mean uh it will be really difficult. I mean we can only look at the data at our end and I 57:11 57 minutes, 11 seconds think we should uh maybe get an opportunity to ask some of these guys but uh see they have added very large 57:19 57 minutes, 19 seconds number of new investors to the industry in last uh four or five years uh I think 57:26 57 minutes, 26 seconds in FI20 the number of investors coming through the fintex would have been less 57:32 57 minutes, 32 seconds than a million and that number is now multiple of that uh in in in the last year I think probably more than 30 57:41 57 minutes, 41 seconds million or so. So it has been an exponential growth in last four or five years and uh I think we have to give it 57:49 57 minutes, 49 seconds a little bit of more time to really assess the the behavior of all of these investors. Uh 58:02 58 minutes, 2 seconds got it. Uh got it. Uh thank you and all the best. Thank you. 58:07 58 minutes, 7 seconds Thank you. Next question is from L of from Central. Please go ahead. 58:14 58 minutes, 14 seconds Yeah. Yeah. Thanks for the opportunity and good good evening everyone. My first question is is on the distribution mix. 58:19 58 minutes, 19 seconds So I was looking at your distribution mix and I was looking at the share of bank excluding the NTC bank. Now if I compare say over the last 12 months the 58:28 58 minutes, 28 seconds the share has down I mean the share is basically down around 30 to 40 basis points uh both on overall basis as well as on the EPM basis. I just wanted to 58:37 58 minutes, 37 seconds know that you know uh is the flow market share higher than the book market share here as well and what are the strategies you know so that we can increase the the share here as well. 58:49 58 minutes, 49 seconds You're talking about I've answered about the SDFC bank share. Are you asking about banks other than SDFC bank? Yes sir. Yes sir. Yes sir. 58:58 58 minutes, 58 seconds Yeah. So other than few banks like uh SBI which is uh almost a closed architecture and uh uh few other banks 59:07 59 minutes, 7 seconds which are more guided uh particularly on the retail distribution side where there would be lesser share. But we have a 59:16 59 minutes, 16 seconds very healthy relationship with almost all the other banks continue to work hard with them and uh uh won't be able 59:23 59 minutes, 23 seconds to share like individual data but with all the other banks who who who operate under an open architecture share has been uh decent India has been helping. 59:35 59 minutes, 35 seconds Okay. So so would you say the county share is increasing uh with with all these banks? 59:40 59 minutes, 40 seconds No. So I I think what you are seeing is like u the overall pie but what happens that uh there is a broad-based growth 59:49 59 minutes, 49 seconds across all all all distribution channels right so banks are growing uh national distributors are growing MFDs are 59:56 59 minutes, 56 seconds growing syntax are growing and then of course the direct investors are are growing so it's like opportunities expanding for all the channels uh and 1:00:05 1 hour, 5 seconds then there could be periods where on a relative basis one channel has grown higher than the other end and our end is 1:00:13 1 hour, 13 seconds to ensure that we optimize across all channels. 1:00:19 1 hour, 19 seconds Understood. My my next question is on your market share. So so actually I was looking at your market share the last 8 to 9 quarters you know uh it's pretty much constant at around 12.8%. 1:00:31 1 hour, 31 seconds uh do you have any explanation to increase your market share to say maybe a 14 or a 15% uh or do you have any vision or strategy you know to how to 1:00:39 1 hour, 39 seconds how you how one can achieve the same if I remember correctly uh I think in 1:00:46 1 hour, 46 seconds the last the early part of last decade it would have been 20% but of course the overall size of the market was small 1:00:54 1 hour, 54 seconds incremental flows were like a small fraction of what we get now in last two years uh the net flows in the industry 1:01:03 1 hour, 1 minute, 3 seconds are like over 9 lakh crores. I mean this was a total equity am couple of years back what we have got in terms of flows. 1:01:10 1 hour, 1 minute, 10 seconds So I mean now the market share what you are seeing is on a much larger base of AUM and much much larger base of flows. 1:01:19 1 hour, 1 minute, 19 seconds Having said that aspiration is always very high. Um as I said I mean 10 15 years back we used to have a much larger 1:01:26 1 hour, 1 minute, 26 seconds share. Of course the overall uh environment is different uh uh but our our aspiration is always always uh to 1:01:36 1 hour, 1 minute, 36 seconds grow more uh I'll put it this way at our end and I generally get deeply driven by by this and and each and everybody in 1:01:45 1 hour, 1 minute, 45 seconds SDFCMC our mission is to be the val creator for every Indian to be the val creator for every Indian. So while on 1:01:52 1 hour, 1 minute, 52 seconds this call I answer all the questions surrounding market share and margins and everything but over a period of time we 1:02:01 1 hour, 2 minutes, 1 second believe that in a country of 1.4 billion people I mean industry has only got 60 million investors and we have got 17 1:02:10 1 hour, 2 minutes, 10 seconds million. We take pride that uh every fourth investor has invested with us. 1:02:16 1 hour, 2 minutes, 16 seconds But there are three investors uh in the industry out of those four who are yet to invest and and we have penetrated quite deeply in last couple of years and 1:02:25 1 hour, 2 minutes, 25 seconds want to penetrate more over a period of time. The other opportunity is if you compare the people who have invested in 1:02:32 1 hour, 2 minutes, 32 seconds capital market versus the people who are in the mutual fund industry. So I assume there are I mean the my my my sense is 1:02:42 1 hour, 2 minutes, 42 seconds at least 13 cr people have invested in capital markets and there are 60 million in the mutual fund. So there are another 1:02:49 1 hour, 2 minutes, 49 seconds 60 70 million uh investors who have invested directly and last couple of years would have given them I mean 1:02:57 1 hour, 2 minutes, 57 seconds looking at the market and you would have better data than than me last couple of years of experience would have uh taught 1:03:05 1 hour, 3 minutes, 5 seconds them that it's better to invest through a professional fund manager like us than doing on their own and of course there 1:03:12 1 hour, 3 minutes, 12 seconds is opportunity beyond that. So I think a very big opportunity on expanding the market. Lot of effort that we put in 1:03:20 1 hour, 3 minutes, 20 seconds place and uh as I said that everybody at our end is passionate about investor education and we do many interesting 1:03:28 1 hour, 3 minutes, 28 seconds things on the ground uh digitally uh virtually in many ways. Several of our campaigns have been extraordinarily uh 1:03:36 1 hour, 3 minutes, 36 seconds uh popular and appreciated by not only by by the uh investors but even the other industry players and uh so our our 1:03:46 1 hour, 3 minutes, 46 seconds focus as a large player is on on growing the market as much as uh getting higher 1:03:53 1 hour, 3 minutes, 53 seconds share in in in in the flows that that we are getting. In fact the SIP flows that everybody talks about in last four or 1:04:00 1 hour, 4 minutes five years there is huge contribution of of NTFC uh because like we were one of the earliest one to talk about importance of 1:04:09 1 hour, 4 minutes, 9 seconds long-term investing importance of investing through the SIP remaining disciplined etc and and all the players who did that over the years I mean 1:04:18 1 hour, 4 minutes, 18 seconds overall as an industry we have been a beneficiary great helpful thanks and wish you all the Thank you. 1:04:28 1 hour, 4 minutes, 28 seconds Thank you. Next question is from Vanos Mandel from Ara Research. Please go ahead. 1:04:38 1 hour, 4 minutes, 38 seconds Hi. Yes or go ahead. 1:04:46 1 hour, 4 minutes, 46 seconds So uh you know as uh retail investors uh as we see these days uh increasingly seeking uh personalized uh portfolios rather than generic mutual fund units. 1:04:58 1 hour, 4 minutes, 58 seconds So how do you see uh perform positioning its uh technology stack to offer you know direct indexing kind of thing at a 1:05:07 1 hour, 5 minutes, 7 seconds scale you know over the next how do you foresee this uh impacting the traditional uh active asset management 1:05:17 1 hour, 5 minutes, 17 seconds I mean we have uh I I mentioned earlier that uh we have large number of products which have been in existence for a long 1:05:24 1 hour, 5 minutes, 24 seconds period of time uh I'm a very big believer in in active investing and and our our track record speaks about it. I 1:05:34 1 hour, 5 minutes, 34 seconds also believe over the next several years uh given the opportunity in Indian market I always call this a stock 1:05:42 1 hour, 5 minutes, 42 seconds pickers paradise there is time arbitrage if you think long-term and ignore the short-term noise there is there is 1:05:48 1 hour, 5 minutes, 48 seconds research opportunity if you put in good resources with good people uh well laid out philosophy 1:05:56 1 hour, 5 minutes, 56 seconds uh you know the processes in place you can continue to generate as far and uh we continue to invest invest in those capabilities. We have one of the most 1:06:05 1 hour, 6 minutes, 5 seconds experienced team in the industry and uh remain positive on that. On the other side, there would be investors who would 1:06:13 1 hour, 6 minutes, 13 seconds meet uh uh their certain needs through the passive fund and we have the best-in-class product on that. be it 1:06:21 1 hour, 6 minutes, 21 seconds index fund or ETFs, be it market cap indices or uh the smart pitch or or 1:06:27 1 hour, 6 minutes, 27 seconds sector thematic uh passive and and u passive I mean the ETF as well as index 1:06:34 1 hour, 6 minutes, 34 seconds fund and of course the distribution capability to to grow both sides of our business. 1:06:43 1 hour, 6 minutes, 43 seconds Uh thank you. Uh the next question I have is regarding the alternative. So 1:06:50 1 hour, 6 minutes, 50 seconds alternative uh needs kind of specialized talent and what kind of cost to aum ratio do you see on alternative division 1:06:58 1 hour, 6 minutes, 58 seconds versus uh let's say the mutual I mean we we don't give segment wise uh 1:07:06 1 hour, 7 minutes, 6 seconds cost to income but uh I mentioned earlier uh uh the work that we have been doing to grow our alternative business 1:07:13 1 hour, 7 minutes, 13 seconds and our our PMS business uh as of now uh I mean we have hired high quality investment resources uh putting in place 1:07:22 1 hour, 7 minutes, 22 seconds client service capabilities putting in place uh uh all the other uh you know the capabilities in place to grow it 1:07:31 1 hour, 7 minutes, 31 seconds over a over a period of time we don't give like segmental uh costs there 1:07:39 1 hour, 7 minutes, 39 seconds okay thank you that's all from my side thank you a reminder to all the 1:07:47 1 hour, 7 minutes, 47 seconds participants you may press star and to ask a question. 1:07:52 1 hour, 7 minutes, 52 seconds The next question is from Anita from Valley Partners. Please go ahead. 1:07:59 1 hour, 7 minutes, 59 seconds Yeah. Hi. Uh thanks for the color so far and all the responses. Just one question from my side. Um this is on the other 1:08:07 1 hour, 8 minutes, 7 seconds income component. Um you know I'm assuming this has come from the the dip in years towards the end of uh March. 1:08:15 1 hour, 8 minutes, 15 seconds But just want to understand if because one of our uh you know one of the other EMCs reported a loss in in this quarter. 1:08:23 1 hour, 8 minutes, 23 seconds So was this given because of the heavier tail towards sort of debt instruments has been softened or was it more through 1:08:30 1 hour, 8 minutes, 30 seconds active tactical rotation? I mean how should we think about that and also you know given you know given the correction 1:08:37 1 hour, 8 minutes, 37 seconds in in in uh you know nifty in uh March because of the crisis how are we adjusting our investment books uh you 1:08:46 1 hour, 8 minutes, 46 seconds know uh bond books duration or equity sensitivity to ensure that you know how the income continues to remain as uh to 1:08:54 1 hour, 8 minutes, 54 seconds be a smoothing portion of our total income. 1:08:59 1 hour, 8 minutes, 59 seconds Okay. Right. So if you see page 34 of our investor presentation, we have given the breakdown of the investment uh 1:09:08 1 hour, 9 minutes, 8 seconds across multiple asset classes. Uh the the equity investment in mutual funds that we have on the balance sheet is uh 1:09:17 1 hour, 9 minutes, 17 seconds largely due to the skin in the game circular from ste. So that portion of the equity investments saw a draw down 1:09:24 1 hour, 9 minutes, 24 seconds because of the market correction in Q4, right? uh the rest of the portfolio is largely in uh liquid and debt uh mutual 1:09:34 1 hour, 9 minutes, 34 seconds funds and we of course have invested in some of our own AI if those are early days of investment. On the liquid and 1:09:41 1 hour, 9 minutes, 41 seconds debt side we run a fairly uh reasonable duration uh and we keep it fairly passive there. We are not uh trying to 1:09:50 1 hour, 9 minutes, 50 seconds do too much active management on the mutual fund uh debt investors that we have on the balance sheet and equity is largely u almost all of the equity 1:09:58 1 hour, 9 minutes, 58 seconds investments in the mutual fund are are in the this is an outcome of the market movement. 1:10:08 1 hour, 10 minutes, 8 seconds Sure. And and this going forward I mean uh we do we you know plan to continue this you know uh comfortable duration on the on the debt side. 1:10:18 1 hour, 10 minutes, 18 seconds Yes. I mean yes we are we are not very long on the deadation case. 1:10:27 1 hour, 10 minutes, 27 seconds Okay. Sure. Thanks. 1:10:30 1 hour, 10 minutes, 30 seconds Thank you very much. As there are no further questions. I'll now like to hand the conference to Mr. Namit monut for closing comments. 1:10:41 1 hour, 10 minutes, 41 seconds Um so to sum up uh despite a volatile year for markets, investors continued to invest in a highly disciplined manner as 1:10:50 1 hour, 10 minutes, 50 seconds reflected in rising SIP flows. For us, it has been a year of consistent progress um across AUM, investor base 1:10:59 1 hour, 10 minutes, 59 seconds and product expansion. Along with strengthening our presence across mutual funds, alternatives and uh international 1:11:06 1 hour, 11 minutes, 6 seconds business, we remain focused on disciplined execution and delivering long-term value to all our stakeholders. 1:11:14 1 hour, 11 minutes, 14 seconds Uh thank you for your time today. 1:11:18 1 hour, 11 minutes, 18 seconds Thank you very much. On behalf of HDFC Asset Management Company Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. Thank you.