HDFC AMC
👉AMC Business is very lucrative once they reach a minimum threshold or after a certain size.
👉AMC Business have very good cash flow.
👉AMC Business can be scaled up very easily with little or minimum investment and with Maximum profit potential.
👉One thing to be noticed is nowadays every one or every person who is starting their career are in to SIP and SEBI itself is promoting SIP and this SIP money is for long term minimum 5-15 Years.
👉 India’s current penetrations of mutal funds are much more as compared to Peers US & China ( Huge opportunity)
👉HDFC as a group has a very good pedigree of promoters and are experts in financial Ecosystems.
👉One can Invest in HDFC AMC & forget it for 10/15/20 years to get Multi bagger & Steady Return.
How HDFC BANK CREATED HUGE WEALTH FOR INVESTOR
Let see how, consider the share price of HDFC bank in year 2000 as Rs. 200 , with initial amount Rs. 1 lakh we would have got 100000/200 = 500 shares.
Let’s take the dividend and split into consideration (no bonus record till date)
Dividend – Rs. – 1.60. 25-Apr-00
Dividend – Rs. – 2.0. 5-May-01
Dividend – Rs. – 2.50. 10-May-02
Dividend – Rs. – 3.0. 3-May-03
Dividend – Rs. – 3.50. 8-May-04
Dividend – Rs. – 4.50. 28-May-05
Dividend – Rs. – 5.50. 13-May-06
Dividend – Rs. – 7.0. 19-May-07
Dividend – Rs. – 8.50. 7-Jun-08
Dividend – Rs. – 10.0. 24-Jun-09
Dividend – Rs. – 12.0. 12-Jun-10
Dividend – Rs. – 16.50. 4-Jun-11
Total dividend till Jun 2011 is Rs. 76.60 per share, so for our 500 shares, total dividend amount will be 500 * 76.60 = Rs. 38,300 as dividend.
Then the stock was split from face value of Rs. 10 to face value of Rs. 2 in 2011, that means every shareholder of 1 stock would have got 5 stocks, so now we would have had 500 * 5 = 2500 shares of HDFC, let’s continue with dividend after 2011 now.
Dividend – Rs. – 4.30. 1-Jul-12
Dividend – Rs. – 5.50. 15-Jun-13
Dividend – Rs. – 6.80. 7-Jun-14
Dividend – Rs. – 8.0. 4-Jul-15
Dividend – Rs. – 9.50. 29-Jun-16
Dividend – Rs. – 11.0 29-Jun-17
Dividend – Rs. – 6.50. 31-MAY-18
Total dividend of Rs. 45.15 per share, so for our 2500 shares, total dividend amount will be 2500 * 51.65= Rs. 1,29,125 as dividend.
Let’s calculate the final amount of dividend which would be
38,300 + 1,29,125= 1,67,425.
And the value of shares at current price of Rs.2150* 2500 = Rs. 53,75,000
So, total worth of Rs 1 lakh invested in HDFC bank in year 2000 would be around
Rs.53,75,000 + Rs. 1,67,425 = Rs. 55,42,125 ( Approx)
Stock have given 55 Times Returns in just 17 Years.
👉Disc – All data provided are for Study purpose only. Consult your financial advisor before investing.
WealthCreatures 