Monthly Update on India`s Asset Management Industry by JM Financial Services Ltd
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In August 2025, equity mutual fund inflows (including hybrid, ex-arbitrage) reached INR 424 billion, down 25% month-on-month (MoM) and 8% year-on-year (YoY). Arbitrage inflows remained robust at INR 67 billion, slightly lower than June’s INR 73 billion. Equity (+ hybrid) NFO (New Fund Offer) inflows dipped to INR 22 billion compared to an exceptionally strong INR 109 billion in July. Key funds launched this month included Kotak Active Momentum Fund, Bank of India Mid Cap Fund, Bajaj Finserv Equity Savings Fund, and 360 ONE Multi Asset Allocation Fund. SIP (Systematic Investment Plan) inflows were steady at INR 282.7 billion, with a marginal 0.7% MoM decline but a 20% YoY increase.
Out of the INR 142 billion MoM decline in net inflows, 61% (INR 87 billion) was due to a weaker NFO pipeline.
NFO momentum slowed further in August, with key launches such as the Baroda BNP Business Conglomerates Fund and Groww Multi Asset Allocation Fund. Gross sales moderated from INR 977 billion in July to INR 773 billion in August—still the second-highest figure in FY26 so far. Redemptions dropped to just INR 350 billion, the lowest seen in FY26.
In terms of segment-wise inflows, thematic funds saw the sharpest MoM decline—falling from INR 94 billion to INR 39 billion—after strong NFO activity in July. Small-cap inflows also dropped by INR 15 billion MoM, of which INR 11 billion was attributable to Bajaj Finserv’s July NFO.
Equity AUM (including arbitrage) remained flat MoM at INR 43.8 trillion (vs. INR 43.9 trillion in July and INR 44.0 trillion in June), with a 1.5% negative market impact partly offset by a 1.1% contribution from inflows.
Debt mutual funds registered outflows of INR 18 billion compared to July’s INR 139 billion inflows, while liquid schemes saw outflows of INR 62 billion against INR 928 billion inflows the previous month. Within the broader Asset and Wealth Management sector, we favour wealth managers over asset managers. Our top pick is 360 ONE WAM. Among AMCs, we prefer NAM, which has consistently gained equity AUM market share over the past two years and trades at attractive valuations of 28x FY27 earnings.
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SEBI Registration Number is INM000010361
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