More Stories

Informist, Wednesday, Jul. 15, 2026

 

–-HDFC AMC: Need to work on to make debt funds more attractive 
–-HDFC AMC: To close private credit fund by end of Sept 

–-HDFC AMC: Fintechs helping in bringing first time investors to fincl mkts 
–-HDFC AMC: Our intl business via GIFT city continue to build steadily 

 

NEW DELHI – A lot more needs to be done to make debt funds attractive to investors while liquid funds are seeing good traction, the management of HDFC Asset Management Co. Ltd. said in a post-earnings analysts call on Wednesday.

 

"There are structural changes in dynamics...somewhere it seems that we need to do a lot more work on how do we make debt funds more attractive for investors", the management said. "We have seen money coming into the liquid fund, while redemptions on the debt category. Last few months, the volatility in rupee, the volatility in interest rates, given the global environment, crude oil prices, etc., we have seen investors redeeming from the debt fund. But we have seen incremental inflows into the liquid fund."

 

The debt fund closing assets under management fell 10% on year to INR 1.61 trillion as on Jun. 30, while the liquid fund closing assets under management were up slightly on year at INR 730 billion.

 

The asset management company announced its June quarter earnings during market hours. Shares of HDFC AMC closed at INR 2,729.20 on the National Stock Exchange, up more than INR 47 from the opening price and nearly 3% higher than the previous close.

 

The company's net profit rose 12% on year to INR 8.38 billion, beating analysts' estimate of INR 7.77 billion. The net profit was up 35% on quarter as the asset management company's other income grew multifold over the trailing quarter. The other income was INR 2.63 billion, up 13% on year and over 23 times on quarter.  

 

HDFC Asset Management Co. plans to close its private credit fund by the end of Jul-Sept. The company has also recently received approval to launch a second fund on the venture capital-private equity segment, the management said. "A marquee global investor has proposed to seed this new fund with a commitment of $50 million", the management said. 

 

Further, the company's management said, fintech platforms are playing an increasingly important role in bringing new investors to mutual funds. The company said that the share of bank distribution has declined. In contrast, fintechs, which had negligible numbers five years ago, have grown sharply on the back of systematic investment plans registrations.

 

"...was just seeing fintechs have registered 8.6 million SIPs in this quarter," the management said. "And to put this number in context, if I remember correctly, in FY20 (2019-20 (Apr-Mar)), total number of SIPs they would have registered would be close to 400,000. So there has been a tremendous growth over the last four or five years in terms of bringing in incremental new investors, particularly through the SIPs."

 

The management also said that a lot of incremental retail participation is now coming through fintech platforms, as the "way people disperse, evaluate, and invest in mutual funds is changing, and fintech platforms are at the centre of that shift."

 

The company's assets under management were at INR 9.32 trillion as on Jun. 30, up 9% on year. Assets under management from systematic investment plans went up to INR 2.33 trillion as on Jun. 30, from INR 2.01 trillion a year ago.

 

In closing remarks on the business front, the management said the company's international business through GIFT (Gujarat International Finance Tec-City) continues to build steadily. HDFC AMC International Ltd., located in GIFT City had been incorporated effective May 27, 2022.  End

 

Reported by Vaishali Tyagi and Kabir Sharma

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.