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Why are AMC stocks under pressure even as equity MFs see strong inflows?

The rise in passive investment is one of the reasons for the underperformance of AMC stocks

January 04, 2023 / 01:07 PM IST
Why are AMC stocks under pressure even as equity MFs see strong inflows?

Representative image

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

The mutual fund industry is going from strength to strength. Last year (2022) turned out to be spectacular for the MF industry with asset under management (AUM) crossing a record high of Rs 40 lakh crore as of November, around a two-fold increase in a span of 5 years. (image) The growth in AUM was aided by an expanding domestic economy, robust inflows, and rising investor participation, particularly individuals. The AUM growth was also boosted by the rise in equity...

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