{"id":18750,"date":"2025-12-08T15:33:20","date_gmt":"2025-12-08T10:03:20","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=18750"},"modified":"2025-12-08T15:33:20","modified_gmt":"2025-12-08T10:03:20","slug":"indias-market-is-infinite-at-the-right-price-says-icici-pru-amc-chief-nimesh-shah","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/indias-market-is-infinite-at-the-right-price-says-icici-pru-amc-chief-nimesh-shah\/","title":{"rendered":"India\u2019s Market Is \u2018Infinite at the Right Price,\u2019 Says ICICI Pru AMC Chief Nimesh Shah"},"content":{"rendered":"

As ICICI Pru AMC Heads to Markets, Nimesh Shah Says India Is an \u2018Infinite Market\u2019 for Low-Cost Investing<\/p>\n

With ICICI Prudential Asset Management Company preparing to launch its IPO on December 12, Managing Director and CEO Nimesh Shah has offered a clear and compelling view of why India remains one of the most attractive mutual fund markets in the world. Calling India an \u201cinfinite market\u201d as long as costs remain low, Shah argues that long-term growth will come from scale, not margins. His comments come at a defining moment for the AMC, which is set to become the sixth asset manager to list in India, with a price band of \u20b92,061\u20132,165 per share.<\/p>\n

In an exclusive conversation on the sidelines of the IPO launch, Shah said, \u201cIf you can deliver a low-cost product to India\u2019s middle class, the market is infinite.\u201d He reiterated that customer experience\u2014not pricing power\u2014will determine industry leaders of the future. For him, India\u2019s real opportunity lies in offering affordable, transparent investment solutions that deepen financial inclusion.<\/p>\n

Why Shah Believes the Future of Indian Asset Management Lies in Volume, Not Margins<\/h2>\n

Shah stressed that asset management in India is fundamentally a volume business, and the obsession with margins often distracts from the true drivers of growth. \u201cIn this business one should not worry about margin, one should worry about volume,\u201d he said, explaining that lower fees improve an investor\u2019s probability of outperforming benchmarks. According to him, \u201cIf I am charging less, my probability of meeting benchmark is higher. So, business is more sustainable.\u201d<\/p>\n

Despite a slight decline in margins over the past few years, ICICI Prudential AMC has maintained robust profitability. Shah highlighted this with a telling remark: \u201cLook at my profit growth over the last three years and see my margins have been dropping all three years, and still I am okay.\u201d With India\u2019s expanding investor base and rising AUM industry-wide, Shah believes that scale will continue to offset margin compression.<\/p>\n

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How Regulation and Investor Behaviour Have Strengthened India\u2019s Mutual Fund Ecosystem<\/h2>\n

A significant part of India\u2019s mutual fund growth story, Shah noted, is built on strong regulation and positive investor experience. He credited SEBI for shaping a transparent and trustworthy ecosystem, stating, \u201cSEBI has ensured that mutual funds remain very pure and transparent for the final investor.\u201d<\/p>\n

He pointed to the resilience of Systematic Investment Plans (SIPs) as a turning point in investor maturity. During market corrections, SIP flows not only remained stable but increased. \u201cWhen the markets corrected, the SIPs didn\u2019t stop. When the markets corrected, more money came into the market,\u201d Shah observed, calling it evidence of how disciplined and long-term oriented Indian investors have become.<\/p>\n

Counter-Cyclical Products Form the Core of ICICI Pru AMC\u2019s Strategy<\/h2>\n

Shah explained that the fund house has built its strategy on understanding investor psychology. \u201cThe customer is always pro-cyclical,\u201d he said, explaining why ICICI Prudential AMC focuses heavily on counter-cyclical products such as dynamic asset allocation and balanced advantage funds.<\/p>\n

Detailing how these funds behave, he said, \u201cWhen the customer is selling, the fund is buying. When the markets are going up, the fund is actually selling.\u201d These products are designed to protect investors from emotional decision-making, a strategy that has earned the AMC more than 25 percent market share in the asset allocation category.<\/p>\n

Shah Describes AMC Margins as a \u2018Cocktail\u2019 of Five Businesses<\/h2>\n

Responding to questions about margin stability, Shah clarified that AMC margins cannot be viewed in isolation. ICICI Prudential AMC runs five distinct businesses\u2014liquid funds, overnight funds, equity, hybrid and others\u2014each with different fee structures. \u201cWhat margins you see is a mix of all these funds. And these all are different businesses,\u201d he said.<\/p>\n

He added that predicting margin trends is nearly impossible: \u201cNo CEO can forecast that with certainty because it depends on market conditions and growth across segments.\u201d His focus, he said, remains on profitable growth across every business line, with the final margin being \u201ca cocktail of all of this put together.\u201d<\/p>\n

Strong Financial Momentum Supports ICICI Prudential AMC\u2019s IPO Launch<\/h2>\n

ICICI Prudential AMC enters the IPO with strong financial momentum. For the six months ended September 2025, the company posted \u20b91,618 crore in profit and \u20b92,949 crore in revenue, growing 21.9 percent and 20 percent year-on-year. For FY25, profit jumped 29.3 percent to \u20b92,651 crore, while revenue rose 32.4 percent to \u20b94,977 crore.<\/p>\n

With a 13.2 percent market share and 143 mutual fund schemes, the largest suite among domestic AMCs, ICICI Prudential AMC remains firmly positioned as India\u2019s second-largest asset manager.<\/p>\n

As the IPO Nears, Shah\u2019s Message Is Clear: India Rewards Scale, Discipline and Trust<\/h2>\n

As the AMC heads toward its December public offering, Shah\u2019s philosophy reflects a long-term, disciplined approach to growth. By focusing on low-cost products, counter-cyclical strategies, and customer-centric outcomes, ICICI Prudential AMC aims to deepen its leadership in a market he believes is limitless.<\/p>\n

His closing thought continues to define the firm\u2019s strategy: \u201cWhat you see is an outcome.\u201d<\/p>\n