Asset Management Companies (AMCs), which manage mutual funds and other pooled investment vehicles on behalf of investors, have seen their share prices skyrocket in recent years. This surge comes as mutual funds have become the preferred investment choice among Indian retail investors, leading to a strong expansion in their Assets Under Management (AUM) and allowing AMCs to generate higher revenue.
Nippon Life India Asset Management, which had a mutual fund AUM of ₹5.6 lakh crore as of the March quarter, has delivered stellar returns as its stock has surged 207% over the past two years, currently trading at ₹753 apiece.
Likewise, HDFC Asset Management Company has returned 165% in the last two years, with the stock currently trading at ₹5,123.90 apiece. As of the March quarter, the company managed an AUM of ₹7.75 lakh crore, according to AMFI data.
Aditya Birla Sun Life AMC has also delivered strong returns to shareholders, with its stock price jumping 109% over the last two years. The company’s Assets Under Management stood at ₹3.8 lakh crore as of the March quarter.
Rising retail flows into mutual funds to keep AMC stocks buoyant: Analysts
According to analysts, the stellar rally in AMC stocks is likely to remain buoyant, driven by sustained inflows into mutual funds from retail investors. They further believe that the recent 50 basis point cut in the repo rate by the RBI could make fixed deposits less attractive, potentially prompting more investors to shift towards mutual fund investments.
Domestic brokerage firm InCred Equities expects the inflow momentum to pick up pace in the near term and sustain in the medium term, driven by higher retail participation, better understanding of market volatility, growing investment discipline, and increasing contributions from B-30 cities.
The brokerage remains optimistic over the mid- to long-term outlook, citing improving geographic penetration and the rising popularity of mutual fund schemes, particularly among young and middle-income investors.
InCred maintains an ‘Add’ rating for all listed AMC players, with Nippon Life India Asset Management as its top pick, citing consistent, performance-led market share gains.
“We like HDFC AMC for its market share gains and Aditya Birla Sun Life AMC for its turnaround story. The ongoing speculation around the possible acquisition of UTI AMC adds to its attractiveness,” the brokerage noted.
Industry AUM tops ₹72 lakh crore in May
As per the data released by AMFI (Association of Mutual Funds of India), the overall average assets under management or AUM of mutual funds in May 2025 increased by 4% mom to the all-time high of ₹72.2 lakh crore, led by healthy inflow and strong capital market returns.
Consequently, equity fund AUM increased by 6% mom to ₹32 lakh crore, which now contributes 44% of the total AUM.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.