AMCs, wealth management companies to be among some of the biggest wealth creators in future: Sunil Singhania

economictimes.indiatimes.com:

Sunil Singhania, Founder,Abakkus Asset, and Bharat Shah, Executive Director, ASK Group, in conversation with Nikunj Dalmia of ET Now on the occasion of Prabhudas Lilladher 80th Anniversary.

Singhania says the wealth and asset management business is still minuscule and this is a business where at least 25% growth is visible for the next 10-20 years. And 25% growth over 10 years is 10x and if it lasts for 20 years it is 100x. It is a good business as one does not need capital and only needs intellectual capital. There is 100% cash conversion. He says asset management and wealth management companies are going to be some of the biggest wealth creators.
What is the next big theme, idea or trend you are betting on? I respect your compliance, we will not talk stocks. But give us where you think there is scope for earnings upgrade, PE upgrade, and where the macros are going to be favourable?

Sunil Singhania: The sectors that look the best in terms of profit growth, sometimes do not turn out to be the best in terms of equity market returns and vice versa. A clear example is 2023 or FY24. The sector that performed the best in terms of profits, growth, and balance sheet, was private sector banks. But no private sector bank, at least the larger ones has given any return last one year.

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