Sundaram Asset Management Targets ₹2 Lakh Crore AUM by 2030, Cites Growth in Alternatives and Fixed Income

Sundaram Asset Management Company (AMC) has outlined growth projections to double its assets under management (AUM) over the next three financial years, aiming to reach ₹2 lakh crore by 2030. The growth strategy follows a period where the firm's AUM crossed ₹1 lakh crore in January before seeing a subsequent decline.

According to Anand Radhakrishnan, Managing Director and CEO of Sundaram AMC, the next phase of growth will rely on multiple pillars. These include diversification by investors and distributors toward smaller AMCs with comparable returns, and expanding market share in fixed-income segments such as liquid, overnight, money market, and short-term funds. Additionally, the company is scaling its alternatives business through performing credit strategies for real estate and mid-market lending, along with equity portfolio management services (PMS) and alternative investment funds (AIFs).

Regarding segment performance, Radhakrishnan noted that alternatives are growing faster, and specialized investment funds (SIFs) could gain traction from a small base. Within mutual funds, large-cap and mid-cap funds, focused strategies, and thematic categories such as services and business-cycle funds present ongoing opportunities.

Systematic Investment Plan (SIP) inflows have remained resilient despite market volatility. Radhakrishnan stated that investors increasingly understand rupee-cost averaging and the mechanics of investing through market cycles. Although some churn exists—with investors stopping existing SIPs or shifting from lump-sum investments—SIPs continue to offer AMCs greater visibility on future flows compared to fluctuating lump-sum contributions.

Addressing market risks, Radhakrishnan mentioned that while Indian households remain under-invested in mutual funds overall, inflows into specific segments require monitoring. He pointed out that substantial inflows into small-cap funds warrant caution at the segment level, driven partly by foreign investors selling large-cap stocks more heavily than mid- and small-cap stocks. However, smaller companies do not inherently offer higher safety.

Looking at the broader macroeconomic environment, Radhakrishnan identified three factors influencing the market outlook: energy prices, global interest rates, and the global artificial intelligence trade. He noted that high single-digit dollar returns in fixed income can diminish emerging market appeal, and interest-rate risks are likely to persist the longest among these global factors.

"Sundaram Asset Management Company's strategic focus on diversifying beyond traditional mutual funds into fixed income, alternatives, and specialized investment funds represents a balanced approach to long-term asset growth. While retail participation through systematic investment plans shows strong structural resilience, the caution flagged around small-cap fund inflows is timely. Asset managers must prioritize sustainable product relevance and prudent risk management as market dynamics shift across global economic indicators." — Dr. Shishir Gupta, Founder & CEO, StartupLanes