Will the purchase of L&T Mutual Fund, impact the ranking of HSBC in terms of AUM? Where will it now rank?
Answer
Answer
It is likely to make a substantial difference to the HSBC ranking considering that the AUM size of L&T is nearly 7 times that of HSBC AMC. IT is now estimated that the ranking of HSBC AMC in the ranking sweepstakes will go up from the current 23rd to 12th, due to the merger. It may be recollected that HSBC AMC is paying Rs.3,188 crore to buy 100% in the asset management company of L&T MF.
Even today, 83% of total assets are controlled by the top 10 players and 94% by the top 15 players. So size is the key and this directly propels the AUM of HSBC to Rs.90,000 crore. Consolidation has been the theme in mutual funds for quite some time. Now the merged entity will be ranked at twelfth place just after Mirae.