India Asset Management Flows recovering, but still lower than history

Research evidence excerpt

India Asset Management Flows recovering, but still lower than history

10 July 2026

India Asset Management EquitiesDiversified Financial Srvcs

Flows recovering, but still lower than history India

◆ E&H AUM for the industry increased c3.3% m-o-m, supported Rahil Shah*

by recovery in net flows and mark-to-market gains Analyst, India Financials

HSBC Securities and Capital Markets (India) Private Limited

rahil.shah@hsbc.co.in

◆ Revival in net flows in E&H funds was also on the back of +91 22 6628 3719

higher lump sum flows – contributing to c24% of total E&F flows Abhishek Murarka*

Senior Analyst, India Financials

◆ Market share gains for large AMCs are getting limited to abhishek.murarka@hsbc.co.in

fewer schemes; valuations appear to be pricing in recovery +91 73049 07567

Gaurav Sharma*

Analyst, India Financials

Net flows improving, but growth outlook remains modest: Industry total AAUM HSBC Securities and Capital Markets (India) Private Limited

gaurav11.sharma@hsbc.co.in

rose by only c0.9% m-o-m. In contrast, equity and hybrid (E&H) AAUM increased +91 22 2268 2011

c3.3% m-o-m, supported by strong mark-to-market gains and a sequential recovery in

net flows. E&H net flows improved to 76bp of opening AAUM (from 59bp in May’26), * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

implying c9-10% AAUM growth from flows (vs c13% in FY26). Lump-sum

contributions also strengthened, representing c25% of E&H net flows. Passive funds

saw a sharp rebound sequentially, with net flows contributing c30% of combined E&H

and passive inflows. Within E&H, large- and mid-cap, flexicap, midcap, and small-cap

schemes remained key drivers, accounting for c50% of E&H inflows (ex-arbitrage) in

1QFY27 (vs 35% in 1QFY26).