Axis Mutual Fund Eyes over 20% AUM Growth from 2026, Targets Top-Six Slot by FY29

Axis Mutual Fund is targeting over 20 per cent year-on-year growth in assets under management from 2026, betting on improving corporate earnings, a strengthening capex cycle and a large untapped investor base, a top company official said on Thursday.

The fund house, which currently manages about Rs 3.85 lakh crore, including nearly Rs 1.25 lakh crore from institutional investors, expects its market share to rise from around 5.6 per cent to 6-7 per cent, with the goal of becoming one of the top six asset managers by FY29.

"We still believe equities will do well as an asset class," Gop Kumar Bhaskaran, MD and CEO of Axis Asset Management, told reporters, adding that the firm is prioritising organic growth rather than acquisitions, as buying smaller players adds limited value to its distribution and technology capabilities.

Highlighting the sector's headroom, he said India has nearly 20 crore demat accounts but only about 5.8 crore unique mutual fund investors, indicating a "huge opportunity" for expansion, particularly in B-30 cities that are driving incremental inflows.

On market outlook, Bhaskaran said Indian equities had delivered modest returns of 5-6 per cent in 2025, but Nifty absolute returns may rise to 10-11 per cent in 2026 as earnings visibility improves.

He added that most negative factors are already priced in.

The positive medium-term view is supported by a healthier banking system with some of the lowest NPAs in years and sustained government infrastructure spending since 2021, which has strengthened the investment cycle, the Axis MF executive said.

The company is also focusing on new-age products, including specialised investment funds and alternative assets such as REITs and InvITs. Passive investing, though currently small in its portfolio mix, is expected to emerge as a major growth driver.

Bhaskaran, however, cautioned that geopolitical risks remain a key external threat, particularly tensions between the United States and Iran, which could trigger crude price volatility.

On technology, he noted that artificial intelligence is being integrated across investor services, investment processes and internal efficiency. PTI BSM NN