AMC revenue and the market
Build an asset manager’s revenue from its AUM, equity mix and fee yields, then show how a market move changes its assets, revenue and — most of all — its profit.
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How to use this calculator
Each step names a control you will find on screen above.
- Average AUM and equity share
Average assets under management over the year, in ₹ crore, and the share of them in equity funds.
- Yields in basis points
Revenue as a share of AUM for equity funds and for everything else (debt, liquid, index). 100 basis points is 1%. Companies sometimes disclose these; otherwise estimate from revenue and AUM.
- Operating costs
Staff, technology, marketing and other costs for the year. They are held fixed when the market moves.
- Equity market move
A percentage change applied to equity AUM only, to see the effect of a rally or a fall.
Worked example: A 20% fall in equities
An AMC manages ₹3,00,000 crore, 55% in equity funds earning 60 bps and the rest earning 15 bps, with ₹700 crore of operating costs. Equity markets fall 20%.
What to enter
- Average AUM
- ₹3,00,000 Cr
- Equity share of AUM
- 55%
- Yield on equity AUM
- 60 bps
- Yield on debt and other AUM
- 15 bps
- Operating costs
- ₹700 Cr / yr
- Equity market move
- −20%
What it shows you
- Blended yield
- 39.8 bps
- Revenue
- ₹1,192.5 Cr
- Operating profit
- ₹492.5 Cr
- Revenue after the move
- ₹994.5 Cr
- Profit after the move
- ₹294.5 Cr
- Change in profit
- −40.2%
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.