HDFC AMC vs Nippon Life: Nomura identifies the ‘Inflow Kings’ as pure equity schemes carry the load in April

The brokerage house in its report added, “Expect industry net equity inflow of Rs 39,800 crore in April 2026, -12% MoM but +48% YoY.”

The brokerage believes this moderation should not be seen as a negative signal. “The likely m-m moderation follows an exceptionally strong March 2026 and should be read as normalisation rather than any structural softening,” it added.

Let’s take a look at the brokerage take on this sector and the rationale behind it –

Stocks in focus: HDFC AMC and Nippon AMC

Within the financial space, Nomura has highlighted asset management companies as its preferred segment.

The brokerage has maintained a ‘Buy’ rating on HDFC Asset Management Company and Nippon Life India Asset Management, citing strong inflows and improving market share trends.

According to the report, both companies are seeing better traction compared to peers. “NAM/HDFC AMC punching above their weight,” the brokerage said, pointing to their higher share of inflows relative to their overall assets.

For instance, Nippon AMC continued to gain momentum with a higher share of inflows, while HDFC AMC also saw a strong jump in its flow share.

Where is the money going?

A key trend highlighted in the Nomura report is the strong preference for pure equity schemes. “Pure equity categories are carrying the load,” the brokerage noted.

Funds such as Flexi Cap, Midcap, and Small Cap are attracting the majority of inflows. These categories together account for more than half of the total industry inflows.

Another important trend is the continued interest in multi-cap funds. According to the broking, “Multi-cap schemes…continue their momentum.”

Shift happening within hybrid funds

The report also pointed to a change in how investors are allocating money within hybrid funds.

“The hybrid category is undergoing restructuring,” Nomura said.

Thematic funds lose favour

Not all categories are seeing inflows. Sectoral and thematic funds have fallen out of favour in recent months.

“Sectoral and thematic funds remain decisively out of favour,” the brokerage noted. Many investors who entered these funds during market highs are currently facing losses, which has reduced fresh interest in these categories.

Market share trends among AMCs

The brokerage also highlighted how different asset management companies are performing in terms of inflow share.

While HDFC AMC and Nippon AMC are gaining ground, others are seeing mixed trends.

For example, ICICI Prudential Asset Management Company saw a decline in its share of inflows.

At the same time, smaller players like Parag Parikh AMC have also shown strong performance in specific categories such as flexi cap funds.

What does this mean for investors?

The brokerage continues to prefer AMCs that are gaining market share and benefiting from consistent inflows. “Our view: Within our coverage universe, we prefer Nippon AMC… followed by HDFC AMC,” Nomura said.

Disclaimer: Investment recommendations and brokerage ratings provided here are for informational purposes only and do not constitute an offer or solicitation. Readers are advised to consult a SEBI-registered investment advisor before making any financial decisions, as market trends and AMC performance are subject to significant volatility and risk.