India Asset Management Flows impacted by macro-economic headwinds

Research evidence excerpt

India Asset Management Flows impacted by macro-economic headwinds

10 June 2026

India Asset Management EquitiesDiversified Financial Srvcs

Flows impacted by macro-economic headwinds India

◆ E&H AUM growth for the industry moderated to 17% y-o-y in Rahil Shah*

May’26 (from 19% in Apr’26) due to weak equity markets Analyst, India Financials HSBC Securities and Capital Markets (India) Private

Limited

◆ Net inflows in E&H funds declined y-o-y due to lower lump sum rahil.shah@hsbc.co.in

flows; SIP contribution was broadly stable sequentially +91 22 6628 3719

Abhishek Murarka*

◆ While sector valuations are above average, near-term growth SeniorHSBC SecuritiesAnalyst, Indiaand CapitalFinancialsMarkets (India) Private

outlook remains muted; remain cautious on the sector Limitedabhishek.murarka@hsbc.co.in

+91 73049 07567

Net flows declined: Total AAUM for the industry moderated to c16% y-o-y (vs 18% y-o-y Gaurav Sharma*

in Apr’26). AAUM growth for E&H funds also moderated to c17% y-o-y (vs 19% y-o-y in Analyst,HSBC SecuritiesIndia Financialsand Capital Markets (India) Private

Apr’26). Of this, equity AUM grew by 15% y-o-y while Hybrid AUM grew by c21% y-o-y. Limited

gaurav11.sharma@hsbc.co.in

Net flows in E&H funds declined by 16% y-o-y impacted by the lower inflows in sectoral + 91 22 2268 2011

and hybrid funds. Overall, 2MFY27 E&H flows suggest c12-13% y-o-y annualised growth

in E&H AUM through flows (c13% in FY26). Index funds flows continued to decline in * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

May’26 (down 80% m-o-m). Gold ETF reported outflows for the first time since the gold not registered/ qualified pursuant to FINRA regulations

rally started; other ETFs reported outflows for the first time in the last 17 months. We see