In a largely downward transferring and unstable fairness surroundings that has prevailed over the previous 18 months, traders would anticipate a section that’s intently linked to the fortunes of the markets to underperform.
Listed gamers within the ₹81-lakh crore mutual fund trade have defied wars, geopolitical tensions, penal commerce tariffs, AI-led disruptions and many others. which have shaken markets over the previous 1.5 years, and have thrived.
Most home asset administration firms (AMCs) haven’t solely delivered strong returns over this era, however are additionally buying and selling at a valuation premium to the broader markets.
AMCs and wealth administration firms delivered 14-65 per cent returns from September 2024 to March 2026, whereas the Nifty 500 TRI fell 7.5 per cent on this timeframe.
And barring one participant, different AMC stocks commerce at trailing twelve months’ PE (worth earnings) a number of of 23.8 instances to 46.3 instances, whereas the Nifty 500 TRI trades at a PE of 23.5 instances. The lone wealth administration agency taken right here instructions a TTM PE of 73 instances.
Curiously, inside the AMC area, the highest mutual fund homes command a considerable valuation premium over the others within the listed area.
Explaining the outperformance
Regardless of the autumn within the markets and the overall negativity round equities, the mutual fund trade has been capable of pull in property at a strong clip.
HDFC, Nippon Life India and ICICI Prudential noticed their common quarterly property underneath administration as of December 2025 develop 17.5-23.2 per cent yr on yr.
The likes of UTI, Canara Robeco and Aditya Birla Solar Life noticed property swell 11.5-15.5 per cent over the identical interval.
This development in property has additionally been accompanied by increasing earnings. All AMCs witnessed development in earnings. The main ones noticed as much as 29 per cent development in TTM internet revenue development.
Anand Rathi Wealth, too, managed a TTM internet revenue development of 29 per cent.
UTI and Nippon Life India alone skilled single-digit development in earnings.
The sustainability of those valuations will rely upon inflows into fund homes remaining regular, particularly through the SIP route and AMCs persevering with nimble operations to ship above-average revenue development. A critical job-loss state of affairs within the broader economic system attributable to AI-led disruptions, a protracted conflict that induces inflation and sustained weak point within the markets could check this wholesome run.
Divergence in valuations
It’s also noticeable that on the PE metric and the market capitalisation to AUM parameter, there’s appreciable distinction between the highest three listed gamers and the subsequent three.
One key cause for this premium lies out there share the bigger AMCs pull in.
ICICI Prudential, HDFC and Nippon Life India make up over 33 per cent of the full asset administration within the trade and they accounted almost 38 per cent of the inflows over December 2024-December 2025 interval.
In distinction, the opposite three gamers accounted for 11 per cent of the trade’s property and nearly 9 per cent of the inflows within the final one yr.
ICICI Prudential (with management in large-cap, worth and alternatives) and HDFC (flexi-cap, mid- and small-cap) have most of their fairness and hybrid schemes within the high quartile of these classes.
Nippon Life India has management in mid- and small-caps, passive funds with its gold and silver ETFs having fun with the best AUM within the trade.
Aditya Birla Solar Life and UTI have a patchy fairness fund file lately, which explains their decrease inflows. Canara Robeco does have a number of funds within the high or mid quartiles, although some have confronted the brunt of the current sharp correction within the broader markets.
Printed on March 7, 2026
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