HDFC Asset Management Company’s market share in systematic investment plans (SIPs) increased even as it saw some softness in overall systematic transactions, with the decline coming from systematic transfer plans (STPs) rather than SIPs, said Navneet Munot, managing director and chief executive.
The distinction matters because HDFC AMC reports combined SIP and STP transactions, while industry data used for comparison covers SIPs alone, Munot said during the company’s earnings call.
“The softness we have noticed has come from STP,” he said, explaining that systematic transfers are largely set up by wealth managers who move money gradually from liquid or money-market funds into equity funds.
When markets become volatile, some wealth managers pause these transfers, he said. “If you strip out STP and look at SIP alone, our market share has actually gone up.”
HDFC AMC’s monthly systematic transactions increased from about 17 million in June to nearly 19 million in September, Munot said. The value of these transactions stood at around Rs 48 billion a month, and had grown nearly fivefold over five years, compared with threefold growth for the industry over the same period, he added.