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Equity Flows Fragment: Smaller Fund Houses Challenge Top AMCs
M
Moneycontrol•21-09-2026, 08:58
Equity Flows Fragment: Smaller Fund Houses Challenge Top AMCs
- •Equity flows in mutual funds are becoming more fragmented, with the top 10 fund houses' share of net equity inflows falling to 65.1% during April-July 2026 from 72.8% in FY26.
- •Smaller fund houses like Bandhan, HSBC, Invesco, and Edelweiss are gaining traction due to stronger recent performance, attracting investors away from larger players.
- •The number of AMCs has increased from 43 in March 2022 to 51 in March 2026, contributing to the broader redistribution of assets.
- •PL Research expects equity-linked AUM growth to moderate, cutting its FY27 estimate to 18.5% from 21% due to subdued market returns and balanced-category flows.
- •The fragmentation trend is expected to continue as investors prioritize recent performance, impacting the earnings outlook for listed AMCs, while non-AMC businesses show stronger growth.
Key Questions Answered
The share of the top 10 mutual fund houses in net equity inflows fell to 65.1% during April-July 2026 from 72.8% in FY26, while the top three players saw their share drop from 42% to 34% over the same period.
Smaller fund houses such as Bandhan, HSBC, Invesco, and Edelweiss gained traction and redistributed flows away from the largest players due to their strong performance across one-year and three-year periods.
PL Research reduced its FY27 growth estimate for equity plus balanced-category assets under management to 18.5% from 21%, driven by a moderation in balanced-category flows and relatively subdued market returns.
