SBI Funds Management Limited

1. Overview

SBI Funds Management Limited is the investment manager to SBI Mutual Fund and is India's largest asset management company (AMC) by quarterly average assets under management (QAAUM), a position the Company has held consistently since March 2021 (Source: CRISIL Report). As of March 31, 2026, the Company's mutual fund QAAUM stood at ₹12,509.98 billion, representing a market share of 15.3%. Including its Portfolio Management Services (PMS) and other advisory mandates ("Alternates"), total QAAUM was ₹29,461.05 billion. The Company was incorporated in 1992 and received SEBI approval to act as investment manager to SBI Mutual Fund in 1993, making it India's oldest AMC, tracing its lineage to India's first mutual fund entity outside the Unit Trust of India (launched 1987).

The Company operates as a joint venture between its Promoters — State Bank of India (SBI), Amundi India Holding, and Amundi Asset Management — combining SBI's extensive domestic banking and distribution franchise with Amundi's global asset management capabilities. This dual parentage is a structural differentiator versus both standalone domestic AMCs and other bank-affiliated peers.

The Company's scale and market position extend across multiple dimensions: it is India's largest passive (ETF and index fund) manager with a 27.9% market share, India's largest PMS provider with a 39.7% market share, and holds the largest B-30 (Beyond Top 30 cities) MAAUM among the top 10 AMCs at 22.82% of total MAAUM. Geographically, the Company maintains a pan-India distribution footprint across 98.19% of India's pin codes and an international business spanning India-focused mandates for overseas institutional investors and advisory services to Amundi's global emerging market strategies.

2. Business Model and Revenue Streams

The Company's core revenue stream is asset management fees, calculated as a percentage of QAAUM across its mutual fund schemes. Management fees constituted 96.47% of revenue from operations in Fiscal 2026 (95.55% in Fiscal 2025; 97.01% in Fiscal 2024). Beyond mutual funds, the Company earns fee income from Portfolio Management Services (PMS) and non-discretionary advisory mandates, Alternative Investment Funds (AIFs), and Specialised Investment Funds (SIF), as well as advisory fees from India-focused offshore mandates managed on behalf of Amundi and other overseas institutional investors.

Fee realization varies meaningfully by product category — actively managed equity-oriented schemes command materially higher fee rates than passive (ETF/index) or debt-oriented products. The table below sets out the Company's Fiscal 2026 QAAUM mix and its contribution to total management fee income by scheme category:

Revenue concentration is well-diversified at the scheme level: the top 10 schemes by mutual fund QAAUM contributed 46.45% of revenue from mutual fund schemes in Fiscal 2026 (down from 50.81% in Fiscal 2024), with the single largest scheme contributing 10.36% of mutual fund scheme revenue. As of March 31, 2026, 36 of the Company's schemes (including 2 offshore funds) have been operating for over 15 years, reflecting a broad, seasoned scheme base rather than dependence on a few flagship products.

Client and distribution mix: the Company's mutual fund investor base is split between individual investors (comprising 47.89% of mutual fund MAAUM) and corporate/institutional investors, distributed through 132,519 institutional and individual mutual fund distributors (MFDs) — comprising 122,460 independent financial advisors, 9,964 national distributors, and 95 banks (including SBI) — alongside proprietary digital channels. On the institutional side, a significant portion of the Company's PMS business has historically derived from a mandate to manage a portion of a statutory provident fund institution's corpus, where the Company held a 49.9% market share of that institution's equity corpus as of March 31, 2026; the institutional PMS client base also spans insurance companies, pension funds, other provident and gratuity funds, endowments, and foreign portfolio investors.

3. Products and Service Portfolio

The Company manages a diversified suite of 128 mutual fund schemes (as of March 31, 2026) spanning equity, debt, hybrid, passive, arbitrage, liquid/overnight, fund-of-funds, and SIF categories, complemented by PMS, AIF, and advisory offerings.

Systematic Investment Plans (SIPs) are a core pillar of the retail franchise: the Company had 16.21 million live SIP accounts as of March 31, 2026 (representing a 15.5% market share by SIP count and 11.4% of industry SIP inflows), with 15.87 million of these accounts active for 37 months or more. The Jan Nivesh SIP facility, launched in February 2025 with a minimum daily investment of ₹250, is designed to expand access among first-time and low-ticket investors, with 65.16% of SIP count sourced from B-30 cities.

Digital infrastructure: the proprietary InvesTap mobile application has 3.97 million registered users and 3.39 million active users (57.17% activation rate), with 5.8 million cumulative downloads, integrated with SBI's YONO digital banking platform (100+ million users).

4. Key Business Strengths

• Market leadership and scale economics: India's largest AMC by mutual fund QAAUM (15.3% market share) since March 2021, with the lowest operating expense ratio among the top 10 AMCs (0.08% of QAAUM in Fiscal 2026 versus 0.10%–0.25% for peers).
• Diversified institutional franchise: India's largest PMS provider (39.7% market share) and a top SIF platform (28.2% share), providing a recurring, high-margin revenue base distinct from the retail mutual fund business.
• Market-leading SIP franchise: 16.21 million live SIP accounts with a 15.5% market share by count and strong persistency, with 15.87 million accounts active for 37+ months.
• Dual parentage advantage: combines SBI's 23,000+ branch domestic distribution network with Amundi's global asset management expertise (~€2.4 trillion AUM), creating a structurally differentiated, difficult-to-replicate platform.
• Institutional, process-driven investment approach: a 71-member investment team with an average tenure of 9 years and 17.8 years of industry experience, reducing key-person risk and supporting consistent performance across market cycles.
• Pan-India omnichannel distribution: 132,519 MFDs and 98.19% pin-code coverage, complemented by proprietary digital platforms (InvesTap) and integration with SBI's YONO ecosystem.

5. Future Growth Strategy

• Deepen retail penetration in underserved markets: expand B-30 city presence (already the highest among top 10 AMCs at 22.82% of MAAUM) via bank-affiliated distribution, MFD network expansion, and continued scaling of the Jan Nivesh SIP initiative.
• Strengthen digital capabilities: enhance InvesTap with AI-powered chatbots, integrated financial planning tools, and seamless digital onboarding, alongside predictive analytics for SIP-persistency management and distributor productivity tools.
• Expand product offerings: broaden passive products (equity/fixed income/international ETFs), scale Alternatives (PMS, AIF Category II/III funds), and grow the recently launched SIF platform beyond its initial "Magnum SIF" offering.
• Diversify institutional advisory and solutions: extend advisory and customised portfolio solutions to a broader set of institutional clients, including pension funds, insurance companies, corporates, and trusts.
• Capture international opportunities: pursue inbound flows via the GIFT City (IFSC) subsidiary and outbound flows by leveraging the Liberalised Remittance Scheme (LRS) and Overseas Portfolio Investment (OPI) frameworks, supported by Amundi's global distribution network across Europe, the Middle East, and Asia.
• Leverage Amundi's global infrastructure: accelerate product innovation and governance practices through embedded Amundi expertise across investment management, risk, and technology functions.