Ladies and gentlemen, good day, and welcome to Q2 FY twenty-five earnings conference call of HDFC Asset Management Company Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. From the management team, we have with us Mr. Navneet Munot, Mr. Naozad Sirwalla, and Mr. Simal Kanuga. I now hand over this call to Mr. Simal Kanuga, who will give us a brief, following which we will proceed with the Q&A session. Thank you, and over to you, Simal. Thanks, Nirav. Good evening, everyone, and thank you for joining in. To start with some bit of a background on industry. So the industry reached an AUM of INR 67 trillion, with number of unique investors crossing 50 million and folio accounts surpassing 210 million. Comparable AUM three years back, that is September 2021, was INR 37 trillion, a growth of INR 30 trillion over the last three years. Number of unique investors tells us a similar story, from 27 million then to 50 million now. This quarter, actively managed equity-oriented funds saw net new flows of INR 1,331 billion, highest ever quarterly flows. This has been accentuated with multiple NFOs. These eighteen odd NFOs contributed INR 368 billion, making up 28% of the net new flows. One more interesting statistic is that the net flows into these funds for the industry in first six months of current fiscal has already surpassed net flows for the full year 2023-24. As against INR 2.37 trillion for FY 2023-24 in actively managed equity-oriented funds, industry has recorded flows of INR 2.45 trillion in the first half of current fiscal. INR 245 billion is SIP's contribution in month of September 2024, again, highest ever. Debt and liquid funds witnessed positive net flows for the quarter. However, they were lower compared to quarter ending June 2024. We now move to us. We closed the quarter with an AUM of INR 7.7 trillion, market share of 11.5%, with equity-oriented funds now comprising 65.7% on quarterly average basis, compared to the industry's average of 57.1%. Our actively managed equity-oriented AUM reached 4.9 trillion with a share of 12.7%. Debt and liquid funds registered a market share of 13.4% and 13%, respectively, on closing basis. Our systematic transactions continue to thrive with a total of over 10 million systematic transactions, amounting to INR 36.8 billion for month of September 2024, as compared to 22.4 billion in September of 2023. It is encouraging to note that 89% of our investors have registered their SIPs for over five years and 82% for over ten years. We have reached 11.8 million unique investors, representing a 24% penetration in the industry. We now move to financials. Our total income for the quarter added up to INR 1,057.9 million. Revenue from operations at INR 887.3 million, a growth of 38% YOY. Our operating profit grew by 47% YOY to be at INR 688.1 million. PAT for the quarter came in at INR 576.9 million. Before I close, it would be pertinent to talk of additional INR 69.75 crores of deferred tax liability. As for Ind AS, we mark to market our investments every quarter and create deferred tax liability on the M2M gains at the end of each quarter. In the past, we created deferred tax liability based on capital gains tax rate prevailing then, including indexation benefit. This has now changed. So for all past MTM gains, we have to account for deferred tax liability at new capital gains tax rate and without indexation benefit. Accordingly, the deferred tax liability recognized by the company on fair value gains on its investment as on June 30, 2024, has increased by INR 69.75 crore, thereby resulting in an additional charge on the PAT of the company for quarter ended September 30, 2024. We can now open for questions. Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question, may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask the question. The first question is on the line of Raja Banga from RHW Trade and Commerce. Please go ahead. Congratulations on the good numbers. I want to know if you are taking any steps to get fresh investments from NRIs. Is there Are you creating any avenues to attract NRI investors in Indian mutual funds? So apart from the money that might be coming from the NRIs in our existing funds, what we are trying to do is we have set up a wholly owned subsidiary in GIFT City, our HDFC AMC International IFSC. And there, one of our product is going live very soon, and then we'll have another three products, all these four will feed into our domestic mutual funds. And we think that from a procedural perspective, as well as our ability to raise more money from the diaspora from different parts of the world, would be greater. Thank you. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Saurabh from JP Morgan. Please go ahead. Hi, sir, just two questions. One is on this, SEBI's, you know, new asset class, framework. I mean, how do you read this? What are the opportunities you think it opens up to you? And the second is, just, on this quarter margins. So basically, is the entire margin thing explainable by the mix, or, is there something else? I mean, just trying to figure out the revenue yield. It should have actually done better, but I was just trying to figure out, whether there was a part of this telescopic as well on this revenue yield. That's it. Thank you. Sure. So on the new asset class, the way I look at this, it is one more opportunity for us. Currently, mutual funds are well bucketed by categories. You have, like, large cap, small cap, multi cap, et cetera. They have restrictions on single stock exposure. This will open up a new avenue with higher levels of flexibility and higher risk-reward profile for set of investors who are looking for the same. This will fall between mutual funds and, let's say, PMS or AIF, where the minimum amount is higher than what in this new asset class would be. There would be potential for greater use of derivatives, greater flexibility for having more innovative investment strategies. So one thing is clear, that regulators want this category to be within the strong realm of mutual fund regulations. This means there will be some restrictions, well laid out principles, but this will open up more opportunities for us. Okay. And sir, just in terms of revenue and your average AUM, so your average AUM is up 13%, revenue is up, slightly higher. So the extra is just this is the mix towards equity or, because there would have been impact of the telescopic as well. So just trying to- Yeah. So I think two reasons. One is, of course, as you rightly mentioned, mix of, I mean, the asset mix and some bit of rationalization on the brokerages. So some partial benefit has come in this quarter. It was effective on first of August. First of August. Okay. All right. Thank you. Thank you. Next question is from the line of Shreya Shivani from CLSA India. Please go ahead. Yeah, thank you for the opportunity. I have two questions. First is on the tax. Sorry if I missed it, but the June quarter's extra deferred tax liability, we've accounted for that in 2Q itself. So, is it fair to say 3Q, 4Q onwards, we will only have a steady state tax rate and there'll be no one-off due to this budget changes that has happened? First is that. And so second, on the equity segment, on the inflows, if you can give us some idea on what kind of net inflows have you seen in your equity book, how much of that has come from SIPs? Some color around that will be useful. I'll take the tax question. So the impact of the changes in the capital gains tax rate on the MTM gains accrued till June thirtieth. So this is all historical MTM gains- Mm-hmm. Accrued till June thirtieth, has been factored in the results in the deferred tax liability that Simal spoke about. Going forward, we'll accrue the deferred tax liability on the revised tax rate on the incremental MTM as going forward. Okay. Actually, we can clarify, right? It was... This is, this is not something that will accrue every quarter. Yeah. Yeah. That's right. Yes. So it's all for past, all of it is settled in this quarter. Correct. Correct. Okay, great. So all the everything till June and then plus the September thing, all of it has come together in 2Q, so it is done with now? That's right. Now it will be the normal tax rate going forward. Yeah, yeah, yeah. Okay. She wanted some color on the net new flows. Net new flows. So we don't actually, as you know, right, we don't disclose the net new- Yeah. -net new flow number. We have disclosed in our presentation the monthly flows that have come in through, systematic transactions. Yeah. But one thing we have commented in past, and we can even state now, that our flow market share is healthier than our book market share. Yeah. So, I mean, my simple, some offhand calculation, if the kind of flows that what we feel is your implied net flows, inflows into the equity segment, if something like that continues even for, like, another one or two quarters, you could very well close the year with decent, you know, about 30% growth on the overall AUM, just by back calculating from the equity segment. Will this be an exaggeration? Where do you feel that the needle is going to fall? Any color around that will be useful. Why the needle should fall? I mean, over the last 35 years, invested heavily in our business and, I mean, you know, given our pedigree, our people, our partnerships, the whole product range, the platform that we have, we think that there is a long, long runway of growth. And as Simal mentioned earlier, that the flow market share has been higher than the book market share. And yeah, we expect to continue building on that. Okay. We want, I mean, a fair market share. On another side, we continue to work on expanding the industry and be a bigger beneficiary of that. Got it, so just last question on the indicative yields for... Not the yields for the debt equity and the segments that you give out. Data keeping questions. Yeah. So for the Q2, equity yields were 58 basis points, debt was 28 basis points, and liquid is between 12 and 13 basis points. Got it. Thank you so much. That's it from me. Thank you. Thank you. Next question is from the line of Abhijeet from Kotak Securities. Please go ahead. Yeah, hi. Good evening, everyone. I have a question on yields. So what has been the impact of commission changes in this quarter? And as you mentioned, you know, some of it will roll forward. So if it's possible to quantify or give a sense of how much is pending to be benefited in the next quarter. Sure, sure. So, Abhijeet, as you know, the regulator had modified the TER methodology and, the AUM slabs, effective first April two thousand and nineteen. Since then, our active equity AUM has almost tripled. It was around, 1,600 billion or to now almost 4,080, 4,800 billion plus. With the telescopic pricing, we have seen an erosion of nearly 18, 19 basis points to our weighted average TER, that you would have noticed, purely due to increase in size of our funds. And we have taken the entire impact on our books over the last five years. Now, we came to a situation where we had to cushion this impact to an extent. But in doing this, a few principles: firstly, we have not touched any assets that were brought in pre-April two thousand and nineteen, and for assets mobilized post that, we have rationalized commission to a small extent. We continue to take larger part of the reduction in TER. This has been effective first August, as I mentioned earlier, and our distribution partners do understand and appreciate the TER dynamics, the way erosion has happened in last few years. So we have done it, you know, in a very collaborative manner. As I mentioned earlier, that look at the way our equity AUM has moved. Forget the flows. If one looks at the last nine months, which that is the current calendar year, we have seen mark-to-market increase of around 25%. And to add to that, then you add the inflows. We mean, I mean, both the AMCs and distributors shouldn't be complaining because revenues in absolute terms have been growing. This kind of mark-to-market gain is not something that we will see every year. So by rationalizing, what we will achieve is the speed at which our margins were going down, we'll see some bit of slowdown. So, let me clarify, Abhijeet. Will equity margins keep sliding? Of course, yes, with rising AUM. What we have tried to do is only soften the pace at which they were falling by doing this exercise. Thanks, Navneet, for that, but the broader target or objective of, you know, keeping the operating margins, you know, within that band where we are today, I think that should be the objective going forward as well, right? That does not change with these changes. Yeah, that's optimizing, of course. I think we want higher margins, and we want lower OpEx, for sure. No, the idea was, you know, are there any thoughts to really, you know, tightly manage these yields going forward? Or is, was it this- was it like a one-time exercise this time, and going forward, probably, I don't know, based on the AUM growth, the decline follows whatever the, you know, capping is? I mean, it's important for me to state that, you know, our relationship, partnership with our distribution partners is deep-rooted. I mean, ultimately, we all of us are in the business of making absolute money and not basis points. The commissions and so have our fees grown at a pace which has positively surprised everyone in last couple of years. Most of our distribution partners have acknowledged that, we have cushioned any reduction in TER for the longest time, and this is something inevitable. I mean, to answer the question, what will happen in future? I mean, our businesses are intertwined, and it has to be a win-win both ways, and I'm sure our partners understand that, and we understand that. Also, I think we can also clarify on what you asked, right? As Navneet mentioned, the new whatever, the rationalization was initiated on first of August. So the direct plan, modifications happened first time in middle of September, and you would have seen further modifications in month of October. So I think this quarter is where all of it will come in, but, some part of that has already been eaten away by the mark-to-market increase in the July to September quarter. ...very helpful. Thank you so much. Thanks. Thank you. Next question is from the line of Mohit Mangal from Centrum. Please go ahead. Yeah. Hi, am I audible? Yes, you are. Please go ahead. Yeah, yeah. First, I mean, I've got two questions. So first is on HDFC Bank. I think the share is kind of pretty constant, and I think last time you said that, you know, now that it's apparent that, you know, we'll have more better efforts to increase the share. So if you could just spell out more effort that you have taken, you know, to boost the market share of HDFC Bank. Yeah. I think about the channel, we mentioned earlier that our flow market share has been higher than the book market share. With a greater focus on the SIPs and trying to get more and more granular there, and we continue to look forward to build on this momentum and explore further growth opportunities together. We've been engaging very deeply with the bank. If I got your question right, if it is that our growth is the within the- Share, yeah. Within that, the HDFC Bank share. Yeah. One of the reason could be like the direct- Are you referring to the pie chart where you are seeing a number at 7-odd% constant? That's what you are referring to? Yeah, yeah. So from 5.9% to 6%, so I think over the last three to four quarters, they're hovering around the five. Okay, okay. So, yeah. From the distribution pie data we have provided, it's important to note that you can't draw definitive conclusions about market share within a specific channel. It's possible that... I mean, for one channel to grow faster than another, while our overall market share in both channels remaining stable. Over the past 12 months, you would have noticed the direct channel has increased from 24.6% to 26.5%, almost like a 2% increase, which is attributed to factors. One is a favorable mark-to-market adjustment, because direct plans have lower fees, and a general uptick in direct investments with FinTechs, RIAs being some of the contributors. Thus, the shift in mix reflects the overall landscape rather than a loss of share in any particular channel. All right. All right, so you're saying that in absolute terms, basically, it has kind of increased? Yes. Actually, I think the way to look at it, right? We don't publish that data, but the way to look at this is out of 100 rupees of sales that HDFC Bank is doing, how much of that is coming to HDFC AMC? And as Navneet touched upon, the number there is healthier than what is there in terms of AUM share. Understood. My second question is that, you know, in terms of unique investors, our market share has increased, you know, now it's around 24 odd%. So if you can give some flavor in terms of, say, you know, with geographies, like, kind of driving that or maybe some age group or something, you know, that would be very helpful. So that's a penetration. I mean, not a market share as such, but we have seen over the last couple of years, I think the increase in the number of investors at our end, the unique investors, as well as the number of folios have increased very sharply, and it's attributed to many factors, whether it's a product performance, the new product launches, the efforts we are making on marketing, the distributor connects, so on and so forth. With geographies and all, that would more or less be in line with where the industry is growing. It wouldn't be dramatically different than that. We are present, like, across the country. You would know, like, we opened 24 new branches this year- Right. earlier this year, and we serve, like, all distribution partners across the country. Understood. So, it's not that, you know, if you can, I mean, bifurcate between, say, T-30 and B-30, I think that's, that would be possible. B-30 incrementally in terms of the new investor counts, in terms of new folio creation, in terms of the newer SIP accounts, has been growing faster than the T-30 from a lower base. Yeah. Got it. Got it. Understood. That's very helpful, and thank you, and wish you all the best. Thank you. Thank you. Next question is from the line of Lalit Deo from Equirus Securities. Please go ahead. Hi, sir, good evening, and congratulations on a good set of numbers. So just two questions. So firstly, on the yield side, so just wanted to understand with the rationalization which we have done, so is it across all the equity schemes, or is it like towards any four, five certain schemes? And also on the distributor side also, like, is it across all the distributors community, or is it towards any particular channel where we are trying to rationalize the commissions? Okay. So depending on the scheme, distribution commission that was being paid, we have created a multi-layered structure, with a floor. We haven't reduced where the commissions were not high. I mentioned earlier that we have also not rationalized any asset that was brought to us pre-April two thousand nineteen. So all in all, we just rationalized rates which seemed high, with fall in TER, in the schemes where TER has fallen more in last couple of years. Yeah. So we have done this in 10, 12 different schemes. So we have done across many schemes. Gotcha. Second is, so another question was like, like, in the alternative space, so like if you see, like on a sequential basis, there has been a decent jump in the overall AUM as of now. Like, it has grown from around 2,400 crores to 4,800 crores in the last six months. ... So like, like what is the progress over there and how, like what is the kind of revenue we are, which we are getting over there? So we're very happy to announce that we successfully closed our VC/PE Fund of Funds, the Category II Fund of Funds, on September thirtieth, where we got commitments of around INR 1,200-odd crore. So one of the reason is that, and then some of the other mandates on the PMS side. Confirm. And so just lastly, on the expenses side, like any particular reason, like, there are employee expenses has been this has gone down sequentially? So we had explained our previous quarter's call. We had that, we typically have an employee engagement event. So that was held in Q1 last year. So that's why you'll see a drop from Q1 to Q2. Otherwise, it's more or less consistent. Yes, sir. Thank you, sir. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Dipanjan Ghosh from Citi. Please go ahead. Hi. Good evening, sir, so firstly, on this new asset class, which is likely to be introduced, just wanted to get some sense on how the expense ratios or the payouts will be structured in this category. I mean, what I understand is in the normal liquidity MF category band, you know, it's regulated with a certain threshold starting with two point two five, so just want to get some sense of how the pricing will be regulated in this new asset class, whether it will be like the PMS entities or the equity MF. Second, in terms of now the AIFs or the alternative segment, you've got some commitments during the quarter and some PMS mandates. Just wanted to get some sense of what are the yields in this segment or your revenue from this segment on a quarterly run rate basis, and lastly, in terms of the repricing of the back book for certain distributors, just wanted to, you know, get some color on whether you have implemented this across your entire distribution landscape, or it has been more scattered across different distributor categories. So first, on the new asset class and what kind of TER structure would be, Dipanjan will have to wait for the final set of regulations. As I mentioned earlier, it's a new opportunity for us, and won't be able to comment in terms of how the final regulation will look like. On the second question, on the fee income from. I mean, it's too early. In fact, it's looking at our overall revenues. I think it's very small. Maybe as the time passes and we have larger AUM, we'll discuss more on that. All I can say is that we remain committed to identify and capitalize on emerging opportunities, within the alternatives and on the PMS side. But as of now, I mean, it's not very meaningful to really talk about. I mean, it's, it's not really moving the needle given the current size. Of course, on 1,200 crores over a period of time, and as we build more products, we hope to make it, more meaningful. Your third question was on- Repricing. I think, as I mentioned earlier, that it was more at the scheme level, and any distributor who would have sold those schemes would have seen that rationalization, yeah. Got it. Yeah, it's same for everyone, Dipanjan. It's same for everyone. If I just follow up on the second question on the alternatives, I mean, how does the product pipeline stack up or in terms of new initiatives or, joint ventures or anything that you're looking at to kind of scale up the non-MF portion? Obviously on a small base, but your incremental strategies on that part of the business. So we are laying the groundwork for the alternative business, and you will expect to hear more updates from us on this front. I mentioned about the VC/PE Fund of Fund, which got the commitments of over 1,200 odd crores. Additionally, our private credit team is taking shape, and we anticipate launching a product in this area over the next couple of quarters. PMS business is developing steadily. I think I mentioned about the GIFT City initiatives earlier. We have received all the necessary approvals to launch first, but that's the feeder fund into the mutual fund. But over a period of time, that will also offer opportunities for us to offer our abilities on the alternative side. Got you. And is there any other sectoral NFO planned for the second half on the equity side, specific? We've got a best-in-class product bouquet. Over the last three, four years, we have done significant number of, like, product launches. In fact, our total product count has risen to almost, like, 100. I think over the next couple of quarters, there could be few opportunities, but, honestly, not many. We would like to, like, really build market share in each and every category where we are present. We are dominant in some of them. We want to be dominant in each one of them. Got it, got it. Thank you, and all the best. Thank you. Thank you. Next question is from the line of Ambarish, individual investor. Please go ahead. Thank you for the opportunity, and good evening to everyone. I had two questions on the SIP. So first one was related to the systematic transactions, which you report both SIP and STP, which is at ten point three one. There seems to be some sort of a jump. ...quarter on quarter. Is there something happening here? If you could give some color. And the second question is, is it possible to report SIP count as well? Thank you. That's the number. I mean, the number of SIP accounts, that 10 million accounts that you have seen. And the jump, I mean, it's been a trend over the last several quarters, where we have seen increase both in terms of number of accounts as well as the size of our SIP book. We have mentioned it several times, this has been one of the big focus area at our end to continue to build our systematic investment book. And yeah, it's been a very, very healthy growth, and we remain very optimistic on that count going forward as well. Sir, on the second part, I will discuss internally, and come back to you. Yes. Thank you. Thank you. Thank you. Thank you. Next question is from the line of Madhukar Ladha from Nuvama Wealth. Please go ahead. Hi, congratulations on a good set of numbers. Just one question. Seeing a pretty big jump in admin and other OpEx, I'm not sure whether this question was asked earlier. You know, maybe you can clarify what's happening over there. Yeah, Madhukar. Hi. So the year on year delta for the quarter expenses went up about INR 19 crores, right? Of the INR 19 crores, incrementally, INR 6.2 crores is due to CSR, that's mandatory expense. Additional INR 2.5 crores has been spent on KYC expenses. So our unique customers have increased by about 50% over a year on year basis to 11.8 million. So that's, in our mind, it's an investment or an expense, because more customers hopefully over time will lead to deeper penetration and, and more AUM. So these two are largely the contributors for the increase. Okay, and so ex the CSR, the other expenses are sort of normal course of business? Yeah, if you strip off almost nine crores, then on the base, it is a normal increase in expenditure. We of course invest in technology, cybersecurity, risk management, compliance, all the stuff that requires our investments continue as part of. Got it. Got it. Okay, great. Thanks a lot. Thank you. Next question is on the line of Devesh Agarwal from IIFL Securities. Please go ahead. Thank you for the opportunity, sir. So you did mention that your flow market share is better than your Indian market share on the active equity side. But can you share some trend on the flow market share itself? How is it has been trending over the last four, five quarters, and is there any decline in this particular quarter? Decline... You're talking about a decline in the equity market share? No, sir. Flow market share trend over the last, say, five to six quarters. Is there any change in the market share of the flow? This quarter, there were, there was a fair bit of like- Talking about the last four, five quarters, is there any particular- Like this quarter versus the last four or five? I think now we need to obviously tell you the... only thing is this time, 28% was NFOs, which was higher, and we did not have any NFO. So maybe this quarter was marginally different, but otherwise, no major change in trend. We had two NFOs and passive funds, but that were of course much smaller than some of the other NFOs that have happened in the industry. You would know that we had a large NFO in the previous quarter, that manufacturing fund, which collected good amount of money. So if you see a market share relative to March, that's been healthy, but yeah, quarter on quarter. Right, sir. And I don't know whether you'll have this number handy, but if you were to exclude the NFO inflows, then how is the market share trending? Does it remain same or is it improving? Probably that will give us a better underlying market share trends. Example of NFOs would be decent. I think it's higher than, if I remember correctly, I said- Yeah. It's higher than the book share, yeah. Okay. Okay. And, sir, what would be the yields on the exit front for equity, active equity? Exit at the end of the quarter. Fifty-eight. Almost fifty-eight. Fifty-eight basis points. Yeah, fifty-eight only. Fifty-eight. And the quarter average was, sir? You mentioned, but I did not get the handle. It was fifty-eight only. The same number. Okay, perfect. Let me just check the number, and to confirm that, yeah, ex of NFOs, the flow share is higher than the market share. I mean, than the- Book share. AUM share, book share. Okay. Okay, perfect. Thank you. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Raghav from JM Financial. Please go ahead. Hi, sir. A couple of questions. First, in your book, I observed that around 47-48% of the book is more than 50,000 crore AUM, so there would be no further repricing. So if for a peer, I build in, say, a one basis point reduction, does it mean that for you it will be half of that? Secondly, on the tax bit, in a steady state basis from now on, do we see... I mean, how much higher effective tax do we see at an effective basis compared to 20% levels we have seen in 1Q and 4Q, 2024? ... Your first assumption is not, not exactly the way it works. So in a sense, what would happen is the new flows would keep coming in at 105 basis points as per the TER formula. But the weighted average still keeps coming down, right? So for a scheme which is, say, today a 95,000 crore AUM scheme would have a TER, say, of 1.35%. So every new rupee flowing in would actually keep diluting that number. Okay. Yeah. Got it. So it is not like, going forward, there would be no so-called, depletion in terms of yield. As the AUM keeps increasing, even from, say, INR 95,000 crore to, say, INR 125,000 crore, you would see a depletion by, whatever, a couple of basis points at the every 5,000 crore kind of a mark. Okay, sir. Got it, and on the tax. What exactly is your question? So with the higher, you know, the capital gains in general, the tax, the effective tax rate would increase for you, right? From one Q and four Q twenty-four levels. So see, the corporate tax remains the same. The capital gains, the deferred tax liability on MTM is a function of, you know, how much gains are there in a particular quarter. The effective tax is a blend of both, right? So difficult to predict. It depends on where MTM goes. Okay. Got it. Thanks. Thank you. Next question is from the line of Prayesh Jain from Motilal Oswal. Please go ahead. Yeah, hi. Just looking at the industry data, you know, if you look at the redemption levels in, on the equity side, they have been clocking in a INR 70,000 crore kind of number, for the past few months. Is there any trend to pick up there that, while the SIP continues to be very strong, but you know, is there the redemptions kind of picking up? And what is the sense that you guys are picking up from the ground on that? you know, the net retention would be around 50-odd%. I think gross flows in last quarter, if I remember correctly, were, like, INR 3 lakh crores or so, and the net flows were INR 1.5 lakh crores. Mm-hmm. So the retention was around 50%. It goes up or goes down a little bit, here and there, month on month. Okay. So point that I was trying to understand is, you know, generally when the equity markets go through a strong phase, wealth managers kind of start recommending pruning positions to equity funds. And especially in a scenario where the debt the interest rates are likely to be cut, money for wealth managers particularly start moving from equity assets to debt assets. Have that kind of traction picked up, or do we still see that not happening in the near term? No, not really. And also another trend I mean, if you notice the SIP flows- Mm-hmm. A very good part of the overall flows are coming in the form of SIPs now, right? Mm-hmm. I mean, at INR 24,500 crore, so as overall flows, the two things: One is the NFO flows, and the second is the SIPs account for a very, very large part of the net flows. Okay. Second, the other question was, you mentioned that there are about eleven to twelve schemes where the rationalization of payouts have happened. That would account for what, 75%-80% of the AUM, equity AUM? I think so, yeah. Somewhere there. Okay. And just last question on the debt side, how have... How do you think the yields on the debt side should move? Do you see, you know, probably in the next six months to one year timeframe, money moving to higher duration assets, which I think the flows have kind of started indicating some bit of trends, but not so strong trends yet. But do you see this happening and, you know, the debt yields kind of start moving higher? No, we have seen both actually. After three years of negative flows, we saw this year, in the first six months, positive flows into, debt and liquids, but a large part of that is at the short end of the curve. At the same time, we are also seeing, some of the investors, locking in into the, long duration products. But I mean, as a percentage, that money would be smaller. And, margins have been same, and I don't see a major change over the next few quarters here. Unlikely. Got that. Thank you so much, and all the best. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Pavan Kumar from RatnaTraya Capital. Please go ahead. Hi, team. I wanted to understand the industry, I guess, including you, have been trying to marginally increase, very marginally, the TER increases that have been announced in maybe September, October. So is this trend going to continue? And at a higher level, my question is, do we expect, because of all these kind of rationalization in commission and this TER increase right now, are we going to see, say, flat kind of yields going forward instead of these sliding yields going forward? What is the overall color on that? ... There have been like couple of people, this seem to be like the highest, I mean, the most asked question today. Let me reiterate one thing: Over the last couple of years, the mark-to-market gains have been phenomenal. Markets have been very kind to us. AUMs have gone up, and they have gone up for both of us, for the asset managers like us as well as our distribution partners. Everybody understands the telescopic pricing, that when you have this kind of AUM growth, both on account of flows as well as mark-to-market, there would be impact on the margins. Over the last four or five years, since the last rationalization happened in April 2019, we have taken the entire brunt of that. A stage came where we had to engage with our partners and tell them that, I mean, in the interest of healthy, good, I would say a partnership, we need to share some bit of it. We've been very rational while doing that. I mentioned, like, a couple of things. We have not done anything for any asset that was brought pre-April 2019. Also, the way rationalization has been done is, like, depending on the scheme, wherever I think the fall has been is deep, where we have rationalized it. I think the partners are very important for us, and partners also understand. I think this is... Our business is, like, intertwined with them, and we both of us understand it has to be a win-win for both, so. Okay. So, but over the medium term, do we intend to keep the yields flat, or is it, like, going to be still, kind of continuous drop as we saw in FY twenty-four? I mentioned earlier that equity margin will keep sliding. Mm-hmm. With the rising AUM. That's a good problem to have. In fact, on every call we would have mentioned, we would like market to go up. We would like more flows to come in. All of us want to make absolute money. We are not in the business of, like, you know, earning basis points. We want absolute money. Mm. and that will come when AUMs grows. What we have tried to do is soften the pace at which they were falling by doing this exercise. Yeah. Okay, and one last question from my side, so the closing equity charge is around, I'm guessing 58 basis points, so where do you expect this to stabilize, or there is no cap, no floor to this? That's what you are almost indicating, is that? Like, how do you think, I mean, next year, if market delivers another 50%? Okay. This will fall, but that will be very healthy for us? Market- Okay, but at a higher level, are we seeing, are we saying if the market, let's say, doesn't deliver, we are going to have some negotiation with all the partners involved, including regulators? Is that the higher level understanding? No, nothing like that. No, no. I think so what Navneet mentioned is, if the market, for example, does not move, and if- Mm the flows are muted, then the yields Yeah. will stay constant. If market moves up, right? Okay. The yield in terms of basis points will fall, but the AUM would increase, and thereby the overall revenues that would come to us would be higher. Okay. All right, got it. Yeah. Thank you. Thank you. Thank you very much. Ladies and gentlemen, that was the last question. I would now like to hand the call back to Mr. Navneet Munot for closing comments. Oh, thank you so much. Wish you all a very happy Dussehra, and then best wishes for the upcoming festive season. Wish you all a very happy Diwali. Thank you. Thank you very much. On behalf of HDFC Asset Management Company Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.