Kolkata, February 19 Axis Mutual Fund aims to achieve over 20 per cent year-on-year growth in assets under management starting from 2026, based on improving corporate earnings, a strengthening capital expenditure cycle, and a large, untapped investor base, a top company official said on Thursday.
The fund house, which currently manages approximately ₹3.85 lakh crore, including nearly ₹1.25 lakh crore from institutional investors, expects its market share to increase 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 that equities will perform well as an asset class," Gop Kumar Bhaskaran, MD and CEO of Axis Asset Management, told reporters, adding that the firm is prioritizing organic growth rather than acquisitions, as acquiring smaller players would add limited value to its distribution and technology capabilities.
Highlighting the sector's potential, he said that 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 Tier-3 cities that are driving incremental inflows.
On the market outlook, Bhaskaran said that Indian equities had delivered modest returns of 5-6 per cent in 2025, but the Nifty absolute returns may rise to 10-11 per cent in 2026 as earnings visibility improves.
He added that most negative factors are already factored in.
The positive medium-term outlook is supported by a healthier banking system with some of the lowest non-performing assets (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 specialized investment funds and alternative assets such as REITs and InvITs. Passive investing, although 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 volatility in crude prices.
On technology, he noted that artificial intelligence is being integrated across investor services, investment processes, and internal efficiency.
