Relationship of NIFTY 50 with
Anand Rathi Wealth Limited
Introduction: –
Anand Rathi Wealth Ltd was incorporated on March 22, 1995. It is an AMFI registered mutual fund distributor and is one of the leading non-bank wealth solutions firms in India, being ranked amongst the top three non-bank mutual fund distributors in the country. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.
Objective of the study: – To calculate the Beta of Anand Rathi and its significance.
Views and Reviews: –
During 2022-23, our total revenue stood at ` 558 Crores, representing a growth of 31% compared to ` 425 Crores during the same period last year. We progressed with a healthy PBT margin of 41.5% for 2022-23 compared to 40.1% for 2021-22. This growth was reflected through the impressive growth in PAT, which stood at ` 169 Crores, signalling an increase of 33% compared to ` 127 Crores during the previous year. Our performance was further enhanced by our robust Asset Under Management (AUM) growth, which saw an increase of 18% year-onyear, amounting to ` 38,993 Crores, primarily boosted by the 19% growth in mutual funds. Furthermore, we maintained strong momentum in our client additions, welcoming nearly 1,270 client families during 2022-23. Regarding our Relationship Managers (RMs), we successfully added 22 new RMs (net basis) this year. Our family-oriented and entrepreneurial work culture has enabled us to be recognised as a ‘Great Place to Work’. As a result, we achieved a very low-regret RM attrition of 1.4% for 2022-23. Alongside this, our superior client retention capabilities have helped us manage our client attrition rate to just 1.1% in terms of AUM lost for 2022-23. Powered by our data-driven approach, we have continuously evolved our range of offerings to match the needs of our clients. We successfully achieved our objective of diversifying the sourcing of Non-Principal Protected Structured Products (Non-PP SPs) from the new issuer. Additionally, our capabilities have helped our clients achieve the desired return level without compromising on our solutions’ risk and liquidity profile.
Data Collection: –
Historical data has been downloaded from 01/02/2023 to 31/01/2024 from www.nseindia.com, and the weekly returns of NIFTY 50 and Anand Rathi are calculated from the same.
Y = a + b X
Here Y is the dependent variable (Weekly Returns of Anand rathi) and X is the independent variable (Weekly Returns of NIFTY 50)
SAIL Weekly Returns = – 0.103 + 0.154(NIFTY 50 Weekly Returns)
The above equation shows the relationship between Weekly Returns of Anandwati and Nifty50.
Data Analysis: –
- of Observations are 53.
- R2 means (0.002) 2% of AnandRathi Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 98% are errors which are not considered by the model.
- T stat for b & P value of it is 0.00, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
- F = 0.145 and P = 0.00 which is less than 0.05 that means the overall the model is statistically significant.
Conclusion: –
Beta (β) is 0.01, it is less than 1 which means that we should invest for long term.