Mutual Fund Profitability Faces Pressure Amid Lower Mark-to-Market Gains
1 report, 1 independent
Updated Fri 00:00
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What happened
Mutual fund profitability is facing pressure due to mark-to-market losses in equity markets. While lower mark-to-market gains were reported, systematic investment plan (SIP) flows contributed 85% of net equity flows in July-August.
Why it matters
Average Asset Under Management (AUM) for Asset Management Companies (AMCs) determines their fee income. Lower mark-to-market gains suggest a sequentially weak quarter for AMCs, although steady SIP flows provide support.
Aditya Birla Sun Life AMC manages the operations of the Aditya Birla Sun Life Flexi Cap Fund.