AMC stocks turn vulnerable as SIP closure rises to 70% in March

Equity funds account for 42 per cent and 52 per cent of AUMs for HDFC AMC and Nippon AMC, respectively

Until a week ago, stocks of asset management companies (AMCs) seemed to be on course to reverse their stark underperformance since January.

But that came to an abrupt halt over the weekend as the data indicated that closure ratio of systematic investment plans (SIPs) rose to 70 per cent in March - above the 11-month average of 57.4 per cent.

What's also of concern is the 25 per cent month-on-month decline in new customer registrations.

With this news, stocks of HDFC AMC and Nippon Life AMC came under pressure since Monday. Thanks to HDFC AMC stock managing to trade in