"There is a slowdown... and it is actually increasing," said Raamdeo Agrawal, co-founder of Motilal Oswal Financial Services. He said the spread of the slowdown is "like a chain effect", which has only risen after the IL&FS crisis.

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It was a steady quarter for Motilal Oswal, but the asset management company’s (AMC) assets under management (AUM) growth has slowed down even as risks in the housing book remain.

“For the last 8-9 months, flows have become zero and market is also flat; mark-to-market growth is not happening,” said Agrawal. “Our AUM is steady at Rs 38,000-38,500 crore, revenues are also stable; we have rationalised expenditure. So that’s keeping the profits almost at the same level, a percentage or two."

He further said that 50 percent of MOSL net worth is in treasury.

Talking about housing finance, he said, “In the months to come, there will be acceleration is disbursal. Demand is large and it’s for us to decide whom to give and how much to give.”

Speaking about the festive season, he said, “It will be better than last 6 months but I do not think it will be as strong as last year, but everybody is saying that festive season should perk up the demand to some extent.”

When asked about SIPs, Agrawal said, “SIP is designed for good and bad times; it is season-free.”

“Portfolio building should now be easier and better for the people who have incremental resources to buy or you can sell even the very high price shares and buy into what you understand and what is reasonable. So those kinds of things should be done,” added Agrawal.

First Published:Aug 1, 2019 11:53 AM IST