Major asset managers have kicked off the fiscal year with strong momentum, posting profit growth ranging between 12% and 27% compared to the previous year. This upward trend is primarily attributed to a thriving equity market that has significantly bolstered assets under management.
The growth was not solely driven by new inflows. Mark-to-market gains on existing portfolios played a crucial role in inflating treasury balances, providing a substantial boost to the bottom line of firms like HDFC AMC, ICICI Prudential, and Nippon Life.
Investor appetite remains resilient, with systematic investment plans (SIPs) continuing to serve as a bedrock for steady capital accumulation. Analysts note that the consistent retail participation has acted as a hedge against volatility, keeping the sector's growth trajectory stable.
Looking ahead, financial experts suggest that if market sentiment remains bullish, these firms are well-positioned to maintain their profitability margins throughout the fiscal year as they continue to capture new assets from a growing base of retail investors.
