As AMC equity flows taper, investors urged to wait till situation improves

Analysts expect a YoY fall of 12-20% in revenue, and 7-10% in operating profit in the June quarter

The continuous decline in net equity inflows seen in the past three months, at a time when retail participation in equities is rising, is worrying investors about the prospects of asset management companies (AMCs) such as HDFC AMC and Nippon Life India AMC (Nippon AMC). 

According to data published by Association of Mutual Funds in India (AMFI), the industry saw net equity inflows hitting a 4-year low in June. Thus, in an otherwise bullish market, the stocks of these AMCs shed up to 3 per cent on Thursday. The BSE Sensex was up 1.1 per cent. 

In fact, shares of HDFC AMC,