SBI Funds vs HDFC AMC: Which stock is better between SBI Funds Management and HDFC AMC? Know on whom to bet from AUM, Profit, ROE, Dividend, Valuation and Growth.
SBI vs HDFC AMC: After the listing of SBI Funds Management in the stock market, a big question has arisen before the investors. Would it be right to invest money in this newly launched stock or would it be better to trust HDFC AMC already present in the market? Both are big asset management companies (AMC) of the country and manage SIP and mutual fund money of crores of Indians. In such a situation, let us know who is stronger in terms of investment…
How does AMC company earn money?
AMC (Asset Management Company) is a company which manages money of mutual funds, PMS, AIF and other investment products. In return the company charges management fees from investors. The earnings of an AMC mainly depend on three things. How much money (AUM) does it have under management? What kind of funds is she running? Ability to manage more money with less expenses. These three things decide how much profit a company can earn.
SBI Funds Management vs HDFC AMC: Who has more money?
| parameters | SBI Funds Management | HDFC AMC |
|---|---|---|
| Mutual Fund QAAUM | Rs 12.51 lakh crore | Rs 9.28 lakh crore |
| Total QAAUM | Rs 29.46 lakh crore | Rs 9.43 lakh crore |
| industry share | 15.3% | 11.4% |
Who is ahead in earnings and profits?
| parameters | SBI Funds | HDFC AMC |
|---|---|---|
| revenue | ₹43,895 million | ₹41,222 million |
| net profit | ₹30,674 million | ₹28,581 million |
| profit margin | 69.88% | 69.40% |
Note- The figures are as per FY26. Both companies are converting about 70% of their earnings into profits. This is considered a very strong margin for any business.
SBI vs HDFC AMC: Who is better in valuation?
| parameters | SBI Funds | HDFC AMC |
|---|---|---|
| P/E Ratio | 40.72 | 38.78 |
| roe | 43.31% | 33.61% |
| Dividend Yield | not available | 2.44% |
What is the biggest difference between SBI AMC and HDFC AMC?
Equity funds account for about 66% of HDFC AMC’s total AUM. AMC gets higher fees on these funds. Also, most of the equity funds of the company have been performing well in the last three years. On the other hand, SBI Funds Management has a large amount of passive funds, ETFs and EPFO money. These fees are relatively less. That means SBI Funds manages more money, but the income from every rupee may be less as compared to HDFC AMC.
The biggest strength of HDFC AMC
HDFC AMC has been listed in the stock market for the last eight years. During this period, the company has consistently delivered good results, paid regular dividends, built investor confidence and shown strong equity fund performance. This is the reason why many investors consider it a more reliable option.
The biggest strength of SBI Funds Management
SBI Funds Management also has many strong points. This is the largest AMC of India. Passive investing has a strong hold. Has low operating costs and has the largest distribution network across the country. According to market experts, if passive funds grow rapidly in the coming years, then SBI Funds can benefit from it.
Keep these things in mind before investing in SBI Funds
- The company has just been listed on the stock exchange, so it does not have a long track record.
- The IPO was completely an offer for sale. The company did not receive new money.
- The company is more dependent on some big distributors and schemes.
FAQs
At what price was the listing of SBI Funds Management?
The company listed at ₹613.30, which was about a 6.85% premium to the issue price of ₹574.
Since when is HDFC AMC listed in the stock market?
HDFC AMC is listed in the stock exchange since August 2018.
Which company has more AUM?
The total AUM of SBI Funds Management is much larger than HDFC AMC.
Is just having a big AUM a guarantee of a better investment?
No. Along with AUM, it is also important to look at the quality, fees, dividend, track record and valuation of the fund.
Source: www.equitymaster.com
Disclaimer: This article has been prepared for general information and educational purposes only. Do not consider this as investment advice. The details given here are according to equitymaster.com. Investing in the stock market is subject to risks. Before investing in any share, IPO or mutual fund, do your own research or consult a SEBI registered financial advisor. Past performance does not guarantee future returns.