Why have AMC stocks of Birla MF and HDFC MF been under pressure in last few weeks?

You are absolutely correct that asset management company or AMC stocks are not having the best of times. Two large AMCs have really underperformed in the recent past. Recently listed Aditya Birla Sun Life AMC has touched a 52-week low after languishing for some time post its listing. The other major stock that has languished is HDFC AMC which recently touched its 52-week low. What is the story behind both these stocks struggling.

The AMC stocks have underperformed in the last 3 months for various reasons. HDFC AMC stock price has suffered largely due to the pace at which it has lost market share in the last 6 months. This is despite overall mutual fund flows growing sharply. Aditya Birla MFs is now nearly 20% below its IPO price. At a macro level, AMCs are not only facing risk of lower retention, but are facing stiff competition from direct equities as well as insurers.