Indian asset management companies are facing a mixed setup. Retail flows, particularly through SIPs, have remained resilient despite weaker market performance. However, Kotak Institutional Equities believes the sector’s next leg of growth will depend on a recovery in markets and sustained fund performance.
In its latest sector report, Kotak said valuations across AMCs have corrected but remain elevated compared with the broader market. The brokerage sees selective opportunities, initiating coverage on SBI Funds Management with a BUY rating and a fair value of Rs 600, while upgrading HDFC AMC to BUY.
