Asset management stocks rebound as AMFI data shows record AUM; Nomura bullish on HDFC AMC, NAM

Shares of asset management companies (AMCs) staged a modest recovery on June 11, 2025, after facing some profit booking in the previous session. The rebound came even as equity mutual fund inflows fell to a 12-month low in May. The data released by the Association of Mutual Funds in India (AMFI) showed a mixed picture—while equity inflows slipped sharply, overall assets under management (AUM) hit an all-time high. The sector also received a boost from Nomura’s reaffirmed bullish stance on leading players HDFC AMC and Nippon Life India Asset Management (NAM India), citing strong growth in AUM and profitability.

Stocks Bounce Back After Initial Dip

HDFC AMC rose nearly a percent after dropping 2 percent in the prior session. Similarly, UTI AMC gained 0.8 percent, recovering from a 1.4 percent decline on June 10. However, Aditya Birla Sun Life AMC (ABSL AMC) remained under slight pressure, trading flat to marginally lower. Despite short-term volatility, AMC stocks have shown strong momentum in recent weeks—UTI AMC and ABSL AMC have surged up to 20 percent in the last one month, while HDFC AMC has gained 15 percent over the same period.

The initial decline in AMC stocks came after AMFI reported a steep 22 percent drop in equity mutual fund inflows for May, totaling ₹19,013 crore, the lowest in a year. However, analysts view this drop as a moment of consolidation rather than cause for concern. Anoop Vijaykumar, Head of Equity at Capitalmind MF, said, “Even with a 22 percent month-on-month dip, ₹19,000-plus crore of fresh equity money marks the 51st straight month of positive flows—a remarkable show of investor discipline since March 2021.”

Record SIP Flows and Rising AUM Signal Long-Term Strength

One of the biggest positives from the AMFI data was the continued strength in Systematic Investment Plans (SIPs). Monthly SIP contributions rose marginally to hit a new high of ₹26,688 crore, marking a 28 percent year-on-year increase. The rising SIP numbers suggest that retail investors continue to favour disciplined, long-term investing strategies.

Moreover, the mutual fund industry’s total AUM climbed to a record ₹72.20 lakh crore in May, up from ₹69.99 lakh crore in April. This milestone is seen as an indicator of the deepening of retail participation in capital markets and the ongoing shift of household savings toward financial assets. Overall, the industry registered net inflows of ₹29,108 crore during the month.

Nomura Remains Bullish on HDFC AMC, NAM

Adding to the positive sentiment, Japanese brokerage Nomura reiterated its bullish outlook on HDFC AMC and NAM India in a report released on June 10. The brokerage maintained 'Buy' ratings on both stocks, driven by expectations of continued growth in AUM and operating profits. HDFC AMC and NAM have rallied 13 percent and 16 percent respectively in the past month, outperforming the broader market even as overall equity inflows slowed.

Nomura analysts Ankit Bihani and Parth Desai highlighted the resilience of SIP flows and improving operating leverage as key tailwinds for these companies. The brokerage has set a price target of ₹4,272 for HDFC AMC, supported by its dominance in the high-margin equity AUM segment. For NAM India, the target price stands at ₹624, driven by cost efficiency and scalable operations.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.