SBI MF IPO: Can Zerodha, Groww and other digital-first funds threaten India’s largest AMC in $2 trillion race?

SBI Funds Management has filed its red herring prospectus for a Rs 11,693 crore IPO, flagging rising competition from digital-first platforms like Zerodha (around Rs 1.6 lakh crore in direct MF assets via Coin) and Groww (over Rs 1.9 lakh crore in MF investments from 1 crore-plus investors). The top 10 AMCs' market share fell from 82.8% in March 2021 to 76.3% in March 2026, with small AMCs expanding to a 29.3% share. Bank-led AMCs, however, still hold 52.1% of industry assets, and SBI MF plans to counter the digital disruption with AI-enabled platforms, passive products, ETFs, PMS, AIFs, and deeper Tier-2, Tier-3 and rural reach via SIPs and the SBI network.