HDFC Mutual Fund, the second listed AMC in India, reported 3.62% growth in net profits to Rs.302 crore for the Jun-20 quarter. The growth in profit was driven by a sharp fall in expenses, especially a 43.5% fall in tax expenses in the Jun-20 quarter. Otherwise, the total income of the AMC fell by 11% to Rs.491 crore in the Jun-20 quarter on COVID pressures.

AUM fell with equity market correction and tepid flows due to which overall fee income took a hit. The AMC was saved by flows from equity and ELSS SIPs staying robust and that has kept the momentum going for the mutual funds sector. HDFC AMC admitted that they were not able to project performance for the year due to COVID uncertainty.