AMC stocks were the darlings of the bourses for a long time but that could change after the June MF flow numbers. The equity MF inflows for the month of June 2020 were lower by 95% on a MOM basis as investors became increasingly sceptical about equity allocation. SIP flows fell below Rs.8000 crore per month for the first time in the last 18 months.

This impacted listed AMC stocks like Reliance AMC and HDFC AMC. Both the stocks were down 4% on 09 July. Indian AMCs have been experiencing falling expense ratios and investors were largely betting on the AUMs continuously rising. If that comes into question, it could create a re-think on AMC valuations, which are already on the higher side.