Investors facing a weak stock market are increasingly looking to asset management companies (AMCs). Even as the Nifty 50 has struggled this year, several AMC stocks have delivered solid gains, helped by a steady stream of money flowing into mutual funds.
Still, the sector is far from a one-way bet. Stocks such as Aditya Birla Sun Life AMC, Nippon Life India AMC and ICICI Prudential AMC have outperformed, while HDFC AMC, UTI AMC and Canara Robeco AMC have fallen behind. The gap reflects growing differences in how investors view each company's growth prospects, market share and valuation.
In 2026, despite the Nifty 50 falling 14%, Aditya Birla Sun Life AMC recorded a gain of 23.15%, Nippon Life India AMC rose by 18.91%, and ICICI Prudential AMC increased by 15.91%, defying the overall market trend. However, not all AMC companies have seen gains: HDFC AMC has fallen by 13.6%, UTI AMC by 21.8%, and Canara Robeco by 31.2%, underscoring the sector's lack of uniformity.
The main source of support for the industry remains comprised of inflows into Systematic Investment Plans (SIPs). Retail investors have maintained their practice of making regular monthly investments even amid market volatility, enabling AMCs to achieve earnings growth. Moreover, many fund houses are expanding their operations into portfolio management services (PMS) and alternative investment funds (AIFs), thereby providing additional revenue streams beyond those from traditional mutual funds.
Recently, Kotak Institutional Equities initiated its coverage on SBI AMC with a ‘buy’ rating and a fair value of ₹600. The brokerage, in its 29 September report, has also upgraded HDFC AMC’s stock recommendation to ‘buy’ following the recent correction, but downgraded Aditya Birla Sun Life AMC to ‘reduce’ following its outperformance over the past year.