InvestorQ : How about investing in UTI AMC for the long term?
Purvesh made post

How about investing in UTI AMC for the long term?

Answer
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Ria Jain answered.
2 weeks ago


You must be aware that the IPO response to UTI AMC has not been too encouraging. Also, the markets are not too happy with the post listing performance of the stock, which was already evident in the grey market prices.

AMC stocks are likely to remain under pressure as long as the returns in the AMC business are coming due to lower costs preferred in mutual funds. That would reduce profitability of the AMC business gradually over time. Also, the valuations are quite steep by global benchmarks for the AMC business. Also, people may prefer the leaders in the AMC business.