HDFC AMC vs ICICI Prudential: The Titans Battling for Mutual Fund Supremacy

Leading Indian asset-management company ICICI Prudential AMC is a joint venture between ICICI Bank (51%) and Prudential Corporation Holdings, UK (49%), which is now preparing to float a marquee public offering. AMC manages a wide slate of mutual fund schemes and portfolio-management services supported by a pan-India distribution network spanning offices, distributors, and ICICI Bank branches.

ICICI Prudential AMC is the largest asset management company in India in terms of active mutual fund quarterly average assets under management (“QAAUM”) with a market share of 13.3% as of September 30, 2025 and the the largest asset management company in terms of Equity Oriented Hybrid QAAUM with market share of 25.8%

The company has announced a pure OFS issue, with no fresh issue of shares. The IPO will open for subscription on December 12, 2025 and close on December 16, 2025 with the listing expected on both the NSE and BSE on December 19, 2025.

The IPO price band has been set at ₹2,061–₹2,165 per share. The total IPO size , via sale of up to 4,89,72,994 equity shares, is estimated to raise approximately ₹10,602.65 crore implying a post-IPO valuation of roughly ₹1.07 trillion for ICICI Pru AMC at the upper end.

Industry Tailwinds Amid SEBI Headwinds

The mutual fund industry in India is in the middle of a sustained structural upcycle, with QAAUM rising from ₹24.5 trillion in FY19 to ₹67.4 trillion in FY25 and further to ₹77 trillion by September 2025 at an 18%+ CAGR, supported by rising income levels, formalisation of savings, and increasing preference for market-linked products.

Mutual fund AUM as a proportion of bank deposits has climbed from 19.7% to 28.7% March 2020 and March 2025, Despite this growth, AUM remains only 20% of GDP, indicating significant headroom versus developed markets where penetration often exceeds 50–60%.

Growth Drivers

• Household financialisation is on the rise, with mutual funds’ share of household financial assets rising from 8% in FY22 to 12% in FY25, while annual net flows from households almost doubled from ₹2.4 trillion in FY24 to ₹4.7 trillion in FY25.
• Monthly SIP inflows have crossed ₹26,600 crore and provided AMCs with a steady, recurring fund base against market ups and downs. Aadhaar-enabled digital onboarding has further accelerated the first-time participation beyond metros, making SIP assets increasingly sticky. With rising incomes and supportive tax norms, SIP flows can reach ~₹40,000 crore per month in two years.
• Digital adoption has increased market access gradually, with smartphone and Aadhaar-based e-KYC driving demat accounts from 23.3 million in FY15 to over 190 million in FY25, thereby allowing faster onboarding even into smaller cities.
• The high savings rate of 29.2% in India in CY23, coupled with a 9.1% CAGR in household savings over FY14–24, presents a sizable opportunity for mutual funds to attract money otherwise invested in bank deposits and gold.

AMCs operate in a highly regulated industry under SEBI and must adhere to stringent rules on fund registration, disclosures, governance, and investor-protection norms. Frequent updates to mutual-fund, PMS and AIF regulations can increase compliance costs and tighten operating flexibility, pressuring profitability for asset managers. Further, SEBI’s proposal to sharply reduce brokerage-fee caps (from 12 bps to 2 bps for cash trades and 5 bps to 1 bps for derivatives) risks compressing industry margins and could trigger cost-cutting or consolidation among smaller players. The investor base is now predominantly individual, supported by surging demat accounts, and growing adoption of low‑cost passive products, positioning leading AMCs such as HDFC AMC and ICICI Prudential AMC to capture durable, retail‑led flows.

FY25 Financial Showdown: Scale vs Efficiency

HDFC AMC vs ICICI Prudential AMC: At a Glance

1. Financial and AUM profile HDFC AMC manages QAAUM of about ₹8,814.3 billion in H1FY26 (₹7,740.0 billion in FY25), translating into roughly 11.4% market share, with equity and equity‑oriented assets of about ₹5,356.8 billion.

ICICI Prudential AMC is larger, with QAAUM of about ₹10,147.6 billion in H1FY26 (₹8,794.1 Billion in FY25) and around 13.2% market share. Its equity and equity‑oriented QAAUM stands at about ₹5,666.3 billion and PAT at roughly ₹21,494.8 million in H1FY26 versus ₹35,330.5 million in FY25, reflecting a broader, high‑margin equity mix.

2. Franchise strength and product breadth HDFC AMC serves about 14.5 million unique investors across 26 million live accounts, backed by 280 offices and 103,000‑plus distribution partners. Additionally, 196 offices are in B‑30 locations, which contribute nearly 19.7% of MAAUM, and individual investors contribute around 70% of MAAUM versus 61% for the industry, but 64.3% of its equity AUM is concentrated in the top five schemes, indicating dependence on flagship funds.​

ICICI Prudential AMC runs 143 schemes (44 equity/equity‑oriented, 20 debt and 61 passive), leads in several hybrid and passive sub‑segments, and has built a strong alternatives platform, with discretionary PMS AUM rising to about ₹215.8 billion in H1FY26 and leadership in discretionary PMS for domestic non‑corporate clients, signalling a more diversified, fee‑resilient product stack. Conclusion: Both HDFC AMC and ICICI Prudential AMC will benefit from India's increasing retail-led mutual fund growth. ICICI Pru AMC uses its scale, range of products, and alternative assets to drive growth. HDFC AMC remains strong as a top equity manager with broad distribution. Even with regulatory fee pressures, the long-term shift toward savings provides plenty of opportunities for both market leaders to achieve lasting, competitive returns.

1. Financial and AUM profile HDFC AMC manages QAAUM of about ₹8,814.3 billion in H1FY26 (₹7,740.0 billion in FY25), translating into roughly 11.4% market share, with equity and equity‑oriented assets of about ₹5,356.8 billion.

ICICI Prudential AMC is larger, with QAAUM of about ₹10,147.6 billion in H1FY26 (₹8,794.1 Billion in FY25) and around 13.2% market share. Its equity and equity‑oriented QAAUM stands at about ₹5,666.3 billion and PAT at roughly ₹21,494.8 million in H1FY26 versus ₹35,330.5 million in FY25, reflecting a broader, high‑margin equity mix.

2. Franchise strength and product breadth HDFC AMC serves about 14.5 million unique investors across 26 million live accounts, backed by 280 offices and 103,000‑plus distribution partners. Additionally, 196 offices are in B‑30 locations, which contribute nearly 19.7% of MAAUM, and individual investors contribute around 70% of MAAUM versus 61% for the industry, but 64.3% of its equity AUM is concentrated in the top five schemes, indicating dependence on flagship funds.

ICICI Prudential AMC runs 143 schemes (44 equity/equity‑oriented, 20 debt and 61 passive), leads in several hybrid and passive sub‑segments, and has built a strong alternatives platform, with discretionary PMS AUM rising to about ₹215.8 billion in H1FY26 and leadership in discretionary PMS for domestic non‑corporate clients, signalling a more diversified, fee‑resilient product stack.

Conclusion:

Both HDFC AMC and ICICI Prudential AMC will benefit from India's increasing retail-led mutual fund growth. ICICI Pru AMC uses its scale, range of products, and alternative assets to drive growth. HDFC AMC remains strong as a top equity manager with broad distribution. Even with regulatory fee pressures, the long-term shift toward savings provides plenty of opportunities for both market leaders to achieve lasting, competitive returns.