ICICI MF, HDFC MF and Birla MF have reported a marginal fall in SIPs on a sequential basis in the June quarter
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Chinmayi Shroff
The early signs of a slowdown in SIP inflows is visible in the top listed mutual fund houses, with most reporting a fall or flattish growth on sequential basis in the June quarter.
The top three fund houses ICICI MF, HDFC MF and Birla MF have reported a marginal fall in SIPs on a sequential basis in the June quarter, which suggests that investors who started SIPs in recent months are either pausing their investments or stopping them completely due to lacklustre returns.
However, monthly SIP inflows are holding above the ₹30,000-crore-mark due to addition of new investors. The industry’s SIP stoppage ratio has been at 96 per cent so far this fiscal, marginally higher than 95 per cent in most part of last year.
The MF SIP stoppage ratio compares the number of discontinued or completed SIP accounts to new SIP registrations in a given month.
CA Niresh Maheshwari, Director, Wealth Wisdom India said the profit surge at listed AMCs this quarter was largely an accounting reversal as the last quarter’s mark-to-market losses flipped into gains as markets recovered in Q1.
Revenue of listed MFs grew just 1-4.6 per cent, but costs rose faster than revenue, so operating margins actually compressed — ICICI Prudential and Aditya Birla Sun Life saw operating profit fall 3 per cent despite higher revenue, he said.
Moreover, systematic flows softened across most AMCs, down 1.4 per cent to nearly 10 per cent, barring Nippon India, he added.
Between a one-off accounting gain and a genuine slowdown in inflows, investors should watch the latter, not the headline profit number, said Maheshwari.
Vincent KA, Senior Research Analyst, Geojit Investments, said on a sequential basis, revenue growth was moderate, as AMC revenues are largely linked to average AUM growth, which remained modest during the quarter.
While SIP and retail inflows remain healthy YoY, sequentially, profitability was impacted by slower QAAUM growth, moderation in net inflows, yield compression and higher operating expenses, rather than any meaningful slowdown in industry flows, he added.
Nikunj Saraf, CEO Choice Wealth, said the latest quarterly results of listed AMCs such as HDFC AMC, Nippon Life India AMC and ICICI Prudential AMC suggest that the sector is losing momentum, with sequential revenue and profit growth remaining largely flat.
Since equity-oriented schemes contribute the highest fee yields of 1–2 per cent, compared with 0.1–0.7 per cent for debt and passive funds — even a modest decline in average equity AUM has a meaningful impact on revenue, he said.
Net equity inflows moderated from the exceptionally strong levels seen in previous quarters as investors turned cautious amid market volatility, he added.
Rajesh Singla, CEO and Fund Manager, Alpha AMC, said as equity markets stabilise in FY27 and MTM losses on the treasury books reverse, reported profits will normalise quickly.
The AMC business in India remains one of the highest-margin financial service models in the world, he added.
Published on July 28, 2026