ilmscore | Prediction Details
"The third risk is that there is a risk of yield compression. For example, if a customer of Rs 50 crore, if the NMA of a customer Managing that when it is 500, the customer will not give the same yield that we discussed. So, if on 50 crores, he was giving you revenue of maybe ₹1 lakh, then when he becomes 550 or 100, he will not give 50 lakhs but will probably give only 40 lakhs. The reason for this is that if your AVM grows by 20%, then it is possible that your revenue may grow by only 18%."
By Groww | December 22, 2024 | Pending
From video
Fundamental analysis of Nuvama | FII increasing stake ft. Mr. Akshay Jogani 00:13:12 - 00:13:40
Interpreted Prediction
There is a risk of yield compression in wealth management, where revenue growth may lag asset growth. For example, a 20% increase in Assets Under Management (AUM) might only result in an 18% revenue increase as client portfolios grow larger.

Prediction Details

Topic
Yield Compression Risk

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