Why stock prices of mutual fund service providers are declining

Since 1 January, shares of RTAs like KFin and Cams have dropped 28% and 24%, respectively

- Srushti Vaidya

Stocks of service providers to mutual funds have been under pressure since January, even when mutual fund stocks have fared better. The fall in stock prices is due to falling profits and revenues, driven by contract renegotiations by large asset management companies (AMCs) and selective discounts given to asset AMCs.

However, experts said diversification into new areas like alternative investment funds (AIFs) administration, the National Pension Scheme (NPS), and global fund administration may provide the next leg of growth.

Since 1 January, shares of registrars and transfer agents (RTAs) like KFin Technologies Ltd (KFin) and Computer Age Management Services Ltd (Cams) have dropped 28% and 24%, respectively.

Consolidated revenue from operations for KFin fell 3.1% quarter-on-quarter (q-o-q) in Q1 FY26, while its consolidated profit after tax (PAT) fell 9% q-o-q in the same period. In the case of Cams, its consolidated revenue from operations fell 0.5% and PAT fell 4.2% on a q-o-q basis in Q1 FY26.