AMCs get a revenue boost from strong retail inflows via mutual funds

Assuming 10% incremental annual inflows and market appreciation of 5-7%, AUM could continue to grow 15% in the medium term

One effect of a sustained market rally is the movement of household savings into the stock market. Coupled with a well-directed “Mutual funds sahi hai” campaign, this meant strong retail inflows being funnelled into the market via mutual funds. And, as the assets under management (AUM) has swelled, meaning more revenues for asset management companies (AMCs), that in turn has meant investment attention for listed AMCs.

Mutual fund AUM crossed Rs 49 trillion in November, up from Rs39 trillion in March with equity AUM at 55 per cent (versus 51 per cent in March). Debt AUM is around 23 per