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Established mutual fund houses have outperformed newer rivals in several categories over the past year, braving market volatility with deeper performance track records, stickier investor money and greater access to initial public offerings (IPOs). A Mint analysis of six mutual fund categories shows that legacy fund houses outperformed newer asset management companies (AMCs) in four of the six categories. In the large- and mid-cap fund category, legacy AMCs delivered an average return of 3.2% between September 2025 and September 2026, compared with 0.8% for fund houses launched over the past decade, based on data from investment research firm Value Research. The gap was narrower in multi-asset allocation funds, where legacy AMCs delivered an average return of 11.07%, compared with 8.7% for newer players. In arbitrage funds, established fund houses delivered an average return of 6.6%, against 6.4% for their newer counterparts. The divergence comes as fund managers navigate turbulent markets. The Nifty 50 has fallen 8.4% since the US-Iran war began on 28 February, touching 22,331.4 on 30 March, its lowest close since then. The uncertainty, however, hasn't deterred investors, with mutual fund assets under management (AUM) growing about 16% year-on-year to ₹87.08 trillion as of August, according to the Association of Mutual Funds in India. Mint selected the top 10 legacy AMCs by AUM and new AMCs with one-year return data. AMCs launched in the past decade are classified as new, while older fund houses are classified as legacy. Experience counts Established AMCs are better able to retain investors when markets turn turbulent, as a longer track record provides investors with more information about how a fund has performed across different market cycles. “A richer and longer track record creates a stronger pull. SIPs (systematic investment plans) also tend to be stickier in funds with consistent performance. If an AMC delivers two to three years of strong, stable returns, it is better positioned to retain investors and attract new ones,” said Sirshendu Basu, head of products at Bandhan AMC Ltd. He added that staying invested longer can amplify the benefits of compounding, particularly in equities, where time in the market can play a significant role in wealth creation. “Legacy AMCs have had the opportunity to showcase a track record of past performance… However, newer AMCs might not have had the same opportunity. They came into the market at a time when portfolio building was difficult,” said Jimmy Patel, managing director, Quantum Mutual Fund. For instance, Axis Large & Mid Cap Fund delivered a return of 4.98% over the past year, compared with Bajaj Finserv Large & Mid Cap Fund's 0.02%. Axis is a legacy AMC, while Bajaj Finserv began operations in 2023. In the multi-asset allocation category, Aditya Birla Sun Life Multi Asset Allocation Fund delivered a return of 11.63% when compared to Samco Mutual Fund's 4.83%. Nippon India Multi Asset Allocation Fund returned 11.47% while Bajaj Finserv Multi Asset Allocation Fund delivered 9.82%. Legacy AMCs have had a similar advantage in the debt segment. “In debt funds, a legacy AMC, having a large AUM, may not have all institutional investors. This leads investors to hold on longer, and redemptions can be lower. Longer-duration investments give them a larger yield. This adds a few basis points of returns to the investor’s portfolio,” said Swarup Mohanty, chief executive, Mirae Asset Investment Managers. Scale can offer another advantage. Large AMCs can commit more capital to IPOs, and if the stocks list strongly, the gains can have a more meaningful impact on the scheme's net asset value. “If an AMC invests ₹1 crore in an IPO compared with another AMC investing ₹1 lakh, the former stands to benefit more in absolute rupee terms if the IPO performs well,” said Basu. Legacy AMCs can also negotiate better rates on corporate bonds. “AMCs with larger AUMs may get an advantage of better credit spreads on corporate bonds as they are investing larger proportions in multiple issuers and earn higher accruals. There might be a difference of 5-10 basis points between an AMC with a large AUM and one that is smaller,” said Patel. Mint's queries emailed to Bajaj Finserv Mutual Fund and Nippon India Mutual Fund remained unanswered. Strategy wins To be sure, the performance of legacy AMCs over the past year does not necessarily point to a structural advantage. “When the market rewards a particular style, that style leads for a period. That does not make one set of AMCs structurally superior; it means the prevailing regime favoured certain portfolios,” said Nilesh Shah, managing director at Kotak Mahindra AMC. He added that in a “momentum market”, smaller AUM can have an advantage as it is more nimble. In a market where quality and selectivity matter more, larger AUM has an equal chance of doing well. A momentum market is one where stocks that have been rising continue to attract buying, while recent laggards remain out of favour. That said, AMCs have employed various strategies to navigate a suppressed market. Capitalmind Mutual Fund, a newer entrant, used a quantitative approach to give better returns. It ranked stocks on factors including momentum and periodically reshuffled its portfolio, according to its CEO Deepak Shenoy. Kotak Mutual Fund focused on investing in value stocks rather than on short-term market movements. “Our Investment process focuses on quality and growth at a reasonable price. In a market where valuation takes precedence over momentum, and quality gets recognized, we are likely to do well,” said Shah. Aditya Birla Sun Life Mutual Fund has also used a similar approach. “Our multi-asset allocation fund has broadly stayed anchored around a 65:20:15 framework across equity, fixed income and precious metals, with tactical deviations limited to around 5%. This allows us to benefit from long-term asset-class diversification and systematic rebalancing,” said Harish Krishnan, chief investment officer-equity, Aditya Birla Sun Life AMC. Shreyash Devalkar, head of equity, Axis Mutual Fund, said that an active portfolio management approach, combined with a balanced allocation between large-cap and mid-cap stocks and selective overseas exposure, has helped drive the fund's performance. “Fund selection matters more than AMC age. Most newer funds also lack the history needed to judge consistency. Legacy AMCs steadier flows likely reflect larger investor bases, wider distribution and continuing SIPs more than past performance. The past year is too short to establish a retention advantage from track record,” said Dhirendra Kumar, founder and chief executive of Value Research.
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