As ICICI Pru AMC Heads to Markets, Nimesh Shah Says India Is an ‘Infinite Market’ for Low-Cost Investing
With ICICI Prudential Asset Management Company preparing to launch its IPO on December 12, Managing Director and CEO Nimesh Shah has offered a clear and compelling view of why India remains one of the most attractive mutual fund markets in the world. Calling India an “infinite market” as long as costs remain low, Shah argues that long-term growth will come from scale, not margins. His comments come at a defining moment for the AMC, which is set to become the sixth asset manager to list in India, with a price band of ₹2,061–2,165 per share.
In an exclusive conversation on the sidelines of the IPO launch, Shah said, “If you can deliver a low-cost product to India’s middle class, the market is infinite.” He reiterated that customer experience—not pricing power—will determine industry leaders of the future. For him, India’s real opportunity lies in offering affordable, transparent investment solutions that deepen financial inclusion.
Why Shah Believes the Future of Indian Asset Management Lies in Volume, Not Margins
Shah stressed that asset management in India is fundamentally a volume business, and the obsession with margins often distracts from the true drivers of growth. “In this business one should not worry about margin, one should worry about volume,” he said, explaining that lower fees improve an investor’s probability of outperforming benchmarks. According to him, “If I am charging less, my probability of meeting benchmark is higher. So, business is more sustainable.”
Despite a slight decline in margins over the past few years, ICICI Prudential AMC has maintained robust profitability. Shah highlighted this with a telling remark: “Look at my profit growth over the last three years and see my margins have been dropping all three years, and still I am okay.” With India’s expanding investor base and rising AUM industry-wide, Shah believes that scale will continue to offset margin compression.
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How Regulation and Investor Behaviour Have Strengthened India’s Mutual Fund Ecosystem
A significant part of India’s mutual fund growth story, Shah noted, is built on strong regulation and positive investor experience. He credited SEBI for shaping a transparent and trustworthy ecosystem, stating, “SEBI has ensured that mutual funds remain very pure and transparent for the final investor.”
He pointed to the resilience of Systematic Investment Plans (SIPs) as a turning point in investor maturity. During market corrections, SIP flows not only remained stable but increased. “When the markets corrected, the SIPs didn’t stop. When the markets corrected, more money came into the market,” Shah observed, calling it evidence of how disciplined and long-term oriented Indian investors have become.
Counter-Cyclical Products Form the Core of ICICI Pru AMC’s Strategy
Shah explained that the fund house has built its strategy on understanding investor psychology. “The customer is always pro-cyclical,” he said, explaining why ICICI Prudential AMC focuses heavily on counter-cyclical products such as dynamic asset allocation and balanced advantage funds.
Detailing how these funds behave, he said, “When the customer is selling, the fund is buying. When the markets are going up, the fund is actually selling.” These products are designed to protect investors from emotional decision-making, a strategy that has earned the AMC more than 25 percent market share in the asset allocation category.
Shah Describes AMC Margins as a ‘Cocktail’ of Five Businesses
Responding to questions about margin stability, Shah clarified that AMC margins cannot be viewed in isolation. ICICI Prudential AMC runs five distinct businesses—liquid funds, overnight funds, equity, hybrid and others—each with different fee structures. “What margins you see is a mix of all these funds. And these all are different businesses,” he said.
He added that predicting margin trends is nearly impossible: “No CEO can forecast that with certainty because it depends on market conditions and growth across segments.” His focus, he said, remains on profitable growth across every business line, with the final margin being “a cocktail of all of this put together.”
Strong Financial Momentum Supports ICICI Prudential AMC’s IPO Launch
ICICI Prudential AMC enters the IPO with strong financial momentum. For the six months ended September 2025, the company posted ₹1,618 crore in profit and ₹2,949 crore in revenue, growing 21.9 percent and 20 percent year-on-year. For FY25, profit jumped 29.3 percent to ₹2,651 crore, while revenue rose 32.4 percent to ₹4,977 crore.
With a 13.2 percent market share and 143 mutual fund schemes, the largest suite among domestic AMCs, ICICI Prudential AMC remains firmly positioned as India’s second-largest asset manager.
As the IPO Nears, Shah’s Message Is Clear: India Rewards Scale, Discipline and Trust
As the AMC heads toward its December public offering, Shah’s philosophy reflects a long-term, disciplined approach to growth. By focusing on low-cost products, counter-cyclical strategies, and customer-centric outcomes, ICICI Prudential AMC aims to deepen its leadership in a market he believes is limitless.
His closing thought continues to define the firm’s strategy: “What you see is an outcome.”
