Diversified portfolio, market share to drive asset growth for HDFC AMC

Volatile market conditions have impacted the mutual fund industry's returns in Q4FY25.

- DEVANGSHU DATTA

However, systematic investment plan (SIP) inflows have remained almost stable, dropping only 2 per cent quarter-on-quarter (Q-o-Q).

One of the market leaders, HDFC AMC, posted equity quarterly average assets under management (AUM) growth of 26.3 per cent year-on-year (Y-o-Y) (down 1.7 per cent Q-o-Q) in Q4. This came as SIP inflows remained steady despite the volatile markets.

The equity AUM market share stayed at 12.8 per cent, excluding exchange-traded funds (ETFs) (flat Y-o-Y/Q-o-Q), and SIP flows rose 24.6 per cent Y-o-Y. The market share of unique individual accounts was up 200 basis points (bps) Y-o-Y to 24 per cent.

Industry SIP flows of ₹78,330 crore in Q4FY25 contributed to the active equity and hybrid inflows of ₹1.04 trillion.

Flat Nifty 50 returns (down -0.6 per cent in Q4FY25) and adverse Nifty Midcap 150, Small cap 250 returns of minus 9.6 per cent and minus 14.9 per cent, respectively, in Q4FY25 resulted in sequential quarterly average AUM fall.