Top AMCs lose market share in equity segment

The major players of the mutual fund industry have yielded ground in the equity segment, with the share of the top seven-eight AMCs (asset management companies) witnessing a decline, analysts at Nomura wrote. The market share of these AMCs in the pure equity category has declined to 46%, the lowest in the previous four-five years, they said.

Top AMCs (except SBI MF) lost market share of 310 basis points year-on-year in May 2022 in the pure equity segment. “We note that month-on-month trends are pointing to a market-share loss,” Nomura analysts wrote.

HDFC AMC lost market share of around 100 bps YoY in May despite robust performances of all schemes, while Axis AMC has lost 70 bps, down 20 bps YoY. ICICI Prudential AMC continues to hold up well, maintaining its market share in most of the segments. Nippon witnessed a 90 bps Y-o-Y decline, giving up the recoveries in April when it had rebounded to the December 2021 levels.

SBI MF has bucked the trend, sustaining market share gains, which increased 40 bps in FY22. “That said, M-o-M market share trends, even for SBI MF, point to a market-share loss, and we believe they warrant monitoring,” analysts wrote.

The gross inflows into equities at Rs 28,300 crore have fallen around 40% since March 2022. Net equity flows (including ELSS) have been reasonably good at Rs 15,600 crore, with flows from systematic investment plans (SIPs) holding up well at Rs 12,300 crore (flat month-on-month) and continued positive lump-sum flows despite uncertainties in the stock markets. Smaller redemptions, down 34% from the March levels, and a stable SIP book have supported net inflows into equities.

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