HSBC has highlighted a decline in net flows for equity and hybrid funds across the mutual fund industry in February 2025, signaling pressure on sector growth. Despite this, gross SIP flows remained resilient, providing some stability to inflows.
The brokerage noted that large AMCs are gaining market share in their top-performing schemes, with relative scheme performance and distribution emerging as key differentiators in an otherwise challenging environment.
However, the overall equity AUM growth outlook remains weak, with muted mark-to-market (MTM) gains and continued pressure on net flows, which could impact the profitability of fund houses in the near term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.