India: "I Had Told You So" Moment Finally Here for Markets? Valuation and Quality to Gain in Debate

Gold Rush for NBFCs May End as Worst Liquidity Crisis in a Decade Bites; Banks Review Exposure Norms

India: Corporate Liquidity Tightness Shows No Signs of Abating

India: Market Correction Due to LTCG or Change in Relative Attractiveness of Equities Bigger Driver?

India: The Equity Cult Has Expanded to Smaller Cities but Is CY18 "The Year of Reversal"?

India: Domestic Equity Inflows Lowest Since Demon, Appetite for IPOs Waning

India: Domestic Retail Investors Have Been Patient so Far but for How Long?

India: CPI Inflation Eased in Mar'18, but Upside Risks to Inflation Continue to Loom

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

Reduction in the Total Expense Ratio (TER) is likely to impact the industry if the burden gets shared more by distributors. Small distributors may prefer to sell other competing products like Insurance, PMS, etcThe impact is more for larger AMCs (HDFC vs Reliance among the listed) as schemes with higher corpus see a bigger reduction in TERs. Schemes above Rs300bn face a reduction of 30-35bps while smallest funds would face only a marginal hit of 1 bpsThe ban on the upfront commission will impact new fund offers, especially from smaller AMCs who paid out as high as 5-6% upfront commissions to attract money from distributorsEquity inflows have become weak over last 5 months with only the SIPs sustaining the inflows. After the LTCG change in the budget, the reduction in TERs and ban on upfront commissions is another disruptive event for the investment industry

Reduction in the Total Expense Ratio (TER) is likely to impact the industry if the burden gets shared more by distributors. Small distributors may prefer to sell other competing products like Insurance, PMS, etcThe impact is more for larger AMCs (HDFC vs Reliance among the listed) as schemes with higher corpus see a bigger reduction in TERs. Schemes above Rs300bn face a reduction of 30-35bps while smallest funds would face only a marginal hit of 1 bpsThe ban on the upfront commission will impact new fund offers, especially from smaller AMCs who paid out as high as 5-6% upfront commissions to attract money from distributorsEquity inflows have become weak over last 5 months with only the SIPs sustaining the inflows. After the LTCG change in the budget, the reduction in TERs and ban on upfront commissions is another disruptive event for the investment industry 

TER Changes to Impact HDFC AMC More; Industry Inflows May Suffer If Distributors Forced to Bear More