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How CLSA Sees These Two 'High Impact Events' Affecting AMC Stocks
Regulatory changes like a uniform total expense ratio for a fund house and subsuming GST within the TER are "high impact events" for some AMCs, according to CLSA. However, asset management companies may pass on the impact of these regulatory events to other intermediaries, according to a note dated March 13. Meanwhile, the subsuming of GST with the base TER can have a "material impact on the profitability of any scheme." Currently, an investor pays 18% GST on top of the TER. Currently, AMCs could hitherto charge up to 30 basis points over and above the TER on new inflows of up to Rs 2 lakh from beyond the top 30 cities (B30) if the scheme's new inflows from retail investors from B30 cities were at least 30% of the scheme's gross new inflows or 15% of the scheme's average AUMs (year to date). Source -https://www.bqprime.com/markets/how-clsa-sees-these-two-high-impact-events-affecting-amc-stocks
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