SBI Funds Management's assets under management (AUM) have crossed ₹13 trillion, with the company recording 17% quarter-on-quarter growth in total AUM during the first quarter of 2026. According to MD & CEO Debashish Mishra, the company's asset mix is shifting significantly towards equities, with equity and equity-related assets now accounting for around the mid-40s of total AUM, compared with the mid-30s earlier. As reported by ET Now, this changing asset mix is benefiting both investors and the company by increasing value and supporting revenue generation. The company's mutual fund QAAUM recorded a 19% CAGR over FY21-26, driven by a 33% CAGR in equity QAAUM and 20% CAGR in passive QAAUM.
Despite market volatility and geopolitical conditions, SIP flows remain the major source of inflows for SBI Funds Management. As per ET Now, Mishra highlighted that this SIP movement has been sustained for the last couple of years and especially for the last 12 months. The company is seeing rising folio numbers and increased participation from smaller cities, particularly beyond the top 30 cities (B30 markets). 98% of SIPs are registered for more than 36 months, indicating sustained investor commitment. SIPs are increasingly being used as goal-based investment instruments for purposes such as children's education and marriage, and have replaced recurring deposits for some investors. The distribution between T30 and B30 markets is around 50:50, with equity participation in smaller cities showing encouraging trends.
Alternative assets are emerging as a key growth lever for SBI Funds Management, with the company now floating specialized investment funds (SIFS) and deepening international presence. According to ET Now, Mishra expects alternatives to play a larger role in revenue diversification over the next two to three years. The company has launched a specialized investment fund focused on the top 100 companies, which garnered ₹1,154 crore within 14 days. Mishra emphasized that the company doesn't want to enter alternative categories without proper preparation, stating they want to enter with proper risk management practices. Equity and equity hybrid mix will be the major active asset mix, with hybrids playing a major role rather than pure equity funds.
Shares of SBI Funds Management Ltd. gained on Monday, August 31, after three brokerages initiated coverage on the asset management company with 'Buy' recommendations. According to reports from CNBC TV18, BofA Securities, HSBC, and Motilal Oswal Financial Services all initiated coverage with positive ratings for the newly listed stock. Motilal Oswal has now provided detailed analysis highlighting SBI Funds as a high-quality, structurally compounding asset management franchise, supported by its market leadership, SBI-led distribution moat, underpenetrated MF industry, and significant operating leverage. The brokerage's latest coverage emphasizes SBI Funds as a high-quality, structurally compounding AMC franchise, supported by its market leadership, SBI-backed distribution network, an underpenetrated mutual fund industry and strong operating leverage.
As reported by CNBC TV18, BofA Securities highlighted SBI Funds' leadership in B-30 markets and expects the company's low-cost platform and strong operating leverage to drive performance. The brokerage noted that SBI Funds' leadership in B-30 markets positions it well to benefit from the next leg of retail participation in India's equity markets. BofA also expects the company's strong distribution capabilities to help mitigate pressure from market share losses in assets under management. The integration with SBI's YONO platform is expected to help simplify folio opening and improve access for first-time investors. Motilal Oswal described SBI Funds as a high-quality, structurally compounding AMC franchise, supported by its market leadership, SBI-backed distribution network, an underpenetrated mutual fund industry and strong operating leverage.
