Outlook for AMCs buoyed by SIP inflows, SIF foray

Brokerages see upside as Q4 results help allay volatility fears

- ABHISHEK KUMAR

Even as continued market volatility remains a headwind for asset management companies (AMCs), steady systematic investment plan (SIP) inflows and addition of a new revenue source — specialised investment funds (SIFs) — paint a positive outlook for the industry, brokerages said in their analysis of the results for the fourth quarter (January-March) of 2024-25 (Q4FY25).

The decline in assets under management (AUM) of equity schemes due to mark-to-market losses and dip in inflows weighed on the performance of mutual funds (MFs) during Q4FY25. Profits were also hit due to lower investment income.

HDFC AMC reported a profit of ₹638 crore, up 18 per cent compared to the same quarter of FY24. Aditya Birla Sun Life's (ABSL's) profit went up nearly 10 per cent to ₹228 crore. Nippon Life India and UTI's net profit declined by 13 per cent and 44 per cent, respectively.