Volatility plays spoilsport: Profit growth a mixed bag for top MFs

Experts said the revival in equity flows would be key for the future earnings growth of the Rs 24.78 trillion MF industry

A slowdown in flows amid challenging conditions in equity and debt markets have led to a mixed year of profit growth for top mutual fund (MF) houses.

“A drop in equity flows would have affected the top line of MFs and this would have weighed on profits, too,” said Kaustubh Belapurkar, director (fund research), Morningstar Investment Advisor India.  

Reliance MF posted a net profit of Rs 486 crore in 2018-2019, which was 6 per cent higher on a year-on-year (YoY) basis. ICICI MF’s net profit grew 11 per cent to Rs 683 crore.

Meanwhile, HDFC MF saw its net profits grow 31 per