SBI Funds Management’s assets under management (AUM) have crossed Rs 13 trillion, with the company recording 17 per cent quarter-on-quarter growth in total AUM in the first quarter of 2026, MD and CEO Debashish Mishra said.
Speaking in an exclusive interview with ET Now, Mishra said the company’s asset mix is shifting towards equities. Equity and equity-related assets now account for around the mid-40s of total AUM, compared with the mid-30s earlier.
“The mix is now more or less going towards equity side as a large AUM. We have more than 13 trillions as of now. The mix was earlier in mid-30s of equity and equity assets. Now it is on mid-40s,” Mishra said.
He said the changing asset mix was benefiting both investors and the company by increasing value and supporting revenue generation.
SIP flows remain key source of inflows
Sustained systematic investment plan (SIP) flows have remained a key source of inflows despite market volatility and geopolitical uncertainty.
“Despite the volatility and geopolitical conditions in the market, we are seeing a very positive SIP movement. As you rightly said, this SIP movement has been sustained for the last couple of years and especially for the last 12 months. This has been our major source of inflows,” Mishra said.
He also highlighted rising folio numbers and increased participation from smaller cities, particularly beyond the top 30 cities, or B30 markets.
Alternate assets emerge as growth lever
Mishra said alternate assets would be another growth lever for SBI Funds Management. The company is looking to expand through specialised investment funds and other products, while also deepening its international presence.
“The second lever is now coming from different alternate assets like we have got we are now floated SIFS specialized investment funds. Internationally are also trying to deepen our presence. So all these alternative investment sources are also levers of growth,” he said.
SIPs, he added, 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.
YONO integration to improve mutual fund access
State Bank of India remains SBI Funds Management’s biggest distribution strength, with 23,000 branches and more than 15,000 employees qualified to sell mutual funds through NISM certification.
Mishra said integration with SBI’s YONO platform would help simplify folio opening and improve access for first-time investors.
SBI Funds Management targets deeper B30 penetration
The company also plans to expand mutual fund penetration in B30 markets through branch-led distribution, investor awareness camps, financial literacy initiatives and greater collaboration with distributors.
Mishra said equity participation in smaller cities was encouraging. He cited the example of a specialised investment fund focused on the top 100 companies, which garnered Rs 1,154 crore within 14 days.
The distribution between T30 and B30 markets was around 50:50, he said.
Alternatives to support revenue diversification
On alternatives, Mishra said rising wealth creation was driving demand among high-net-worth individuals, family offices and institutions for private credit, structured assets, specialised equities and differentiated solutions.
“We don’t want to enter this category without preparation merely because it’s like a fat fashionable business. We want to enter with proper risk management practices,” he said.
He expects alternatives to play a larger role in revenue diversification over the next two to three years.
Equity, hybrid funds to remain central to strategy
Mishra said equity and hybrid funds would remain central to the company’s strategy. Equity and equity-related assets currently account for around 46 per cent of AUM, with the company aiming to take the share towards the mid-50s, depending on investor preferences.
“I am seeing now the hybrids also playing a major role rather than pure equity funds. Hybrids are doing well also in the market. So equity and equity hybrid mix will be a major active asset mix,” he said.
