Prudent Corporate expects mutual fund revenue growth above 20% despite lower yields

Ahmedabad-based financial services company Prudent Corporate Advisory Services expects its mutual fund business to deliver more than 20% revenue growth in the financial year 2026-27 (FY27) despite lower yields following SEBI’s regulatory changes, Chairman and Managing Director Sanjay Shah said. The insurance business is expected to grow even faster.

Shah said the decline in revenue in the April-June 2026 quarter was largely due to regulatory changes in mutual fund trail commissions, under which fund houses pay distributors an ongoing commission as long as investors remain invested, and seasonality in the insurance business.

While Prudent’s average yields have declined from about 91.2 basis points to 88.4 basis points following the Securities and Exchange Board of India’s (SEBI) revised trail commission structure, higher assets under management (AUM) and an expanding systematic investment plan (SIP) book should support revenue growth in the coming quarters if markets remain stable, he said.

Prudent Corporate Advisors currently manages around ₹1.40 lakh crore of assets and has a monthly SIP book of ₹120-140 crore.

The insurance business will also remain a key growth driver. Prudent is targeting 40-45% growth in health insurance premium collections, while the overall insurance business is expected to grow by at least 30% this financial year.

Stronger traction in life insurance products introduced over the last year is also expected to support premium growth during FY27.

The company’s current market capitalisation is ₹11,882.68 crore.

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