AMCs likely to report strong gains in Q4FY24 on back of AUM growth

The share prices of listed asset management companies have outperformed the benchmark Sensex and analysts remain positive on the sector

Although net inflows into Equity Mutual Funds deteriorated month-on-month (M-o-M) in March 2024 to Rs 22,576 crore (excluding Hybrid), down 15 per cent M-o-M (up 12 per cent Y-o-Y), asset management companies (AMCs) had a great year with robust growth in assets under management (AUMs). AMCs are likely to report strong PAT growth (30-40 per cent Y-o-Y) in Q4FY24 on the back of AUM growth.

In Q4FY24, domestic mutual fund (MF) industry QAAUM (quarterly average AUM) grew by 34 per cent Y-o-Y and 10 per cent quarter-on-quarter (Q-o-Q) to Rs 54 trillion ($652 billion). The Equity QAAUM grew faster at