ICICIAMC

&

HDFCAMC

Outrun Regulatory Fee Cuts in Q1

Driven by a broad market recovery and relentless monthly SIP contributions hitting ₹31,781 crore, the overall quarterly average assets under management (QAAUM) for the mutual fund industry grew by 15.4% year-over-year to ₹83 lakh crore. Robust Corporate Earnings: Top asset management firms reported strong profitability for Q1 FY27;

led the pack with a 23.1% surge in net profit to ₹965 crore, while posted a steady 12.1% increase to ₹838 crore. Regulatory Cost Absorption: Concerns over recent fee regulations and Total Expense Ratio (TER) cuts proved harmless to bottom lines, as fund houses successfully defended their operating margins by optimizing distributor commissions and managing internal expenses effectively. Fintech and Retail Engagement: Systematic Investment Plans (SIPs) have successfully transformed into a baseline savings habit rather than a speculative market timing choice, with digital fintech channels rapidly replacing traditional banking networks to fuel record-breaking retail investor acquisition. Expanding Listed Options: The entry of India's largest fund manager, SBI AMC, via a ₹9,813-crore IPO closing on July 16, expands the publicly traded asset manager landscape, offering public investors a third major corporate benchmark at a slight valuation discount relative to its peers.