AMCs see March uptick. Is it too early to celebrate?

₹32,100 crore in March, rising 8% month-on-month. But this hasn’t been enough to mask the fact that net inflows into equity schemes have slipped year-on-year in FY26 against a growth in FY25.Now, it’s not as if inflows typically spike in March, as it is the last month of a financial year. Note that SIP inflows in March have been flat month-on-month in FY25 and FY24.

Clearly, retail investors have taken advantage of the dip in equities that started due to concerns around the West Asia war. SIP has helped push net inflows (new money coming in) into equities to an eight-month high of ₹40,500 crore in March.Despite robust inflows last month, asset management companies (AMCs) are staring at a first quarter-on-quarter fall in average assets under management (AUM) in equity schemes in the past eight quarters at least. Quarterly average assets under management (QAAUM) fell by 2.5% to ₹33.85 trillion sequentially in the March quarter (Q4FY26).

The sharp fall in stock prices in March also contributed to the AUM contraction.Against this backdrop, one AMC has shown remarkable resilience. ICICI Prudential Asset Management Co. is the only AMC in the top three listed ones in the industry by market capitalization, that has shown growth in equity QAAUM of 2% in Q4FY26, per Kotak Institutional Equities.

HDFC Asset Management Co. and Nippon Life India Asset Management, placed second and third on market capitalization, respectively, have had flat equity QAAUM.Sure, one quarter’s performance shouldn't drastically influence investor sentiment in AMC stocks. From a long-term perspective, the industry’s revenue depends on two factors: AUM or volume, and the rate of asset management fees charged, commonly known as yields.Management fees will