India’s asset management industry saw a noticeable uptick in net flows into equity and hybrid funds during June, signaling a potential inflection point for the sector, according to HSBC. The brokerage flagged a 14% annualised AUM growth through flows in these categories and said the outlook for AMCs is beginning to improve.
HSBC notes that the improvement in flows was concentrated in four key fund types, which together account for a significant portion of overall retail participation. Though the rise was not broad-based across all categories, the consistency of inflows in systematic investment plans (SIPs) and balanced advantage funds is seen as encouraging.
The brokerage attributed this positive trend to a combination of buoyant equity markets, improved investor sentiment, and regulatory clarity on TER (Total Expense Ratio) norms, which had earlier weighed on AMC valuations. HSBC also pointed out that while base management fees remain under pressure, the shift towards equity-heavy portfolios and hybrid strategies could boost revenue yields.
Looking ahead, HSBC expects policy tailwinds and higher retail risk appetite to aid further growth. “The current trend bodes well for listed AMCs like HDFC AMC, Nippon Life India AMC, and UTI AMC,” said the brokerage, adding that earnings visibility is improving for the sector as a whole.
The combination of market momentum and product innovation, including thematic funds and international exposure strategies, may help sustain the current inflow trajectory into FY26, it added.
