Ladies and gentlemen, good day and welcome to the Q2 FY 2027 earnings conference call of SBI Funds Management Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. From the management team, we have Mr. Debasish Mishra, Managing Director and CEO; Mr. Srinivas Jain, Joint CEO; Mr. Manish Mehta, Chief Business Officer; Mr. Amol Joshi, Chief Financial Officer; Vinaya Datar, Chief Compliance Officer; Dinesh Balachandran, Head of Investments; Manish Chheda, Chief Investor Relations Officer. Joining the call, I now hand the conference over to Mr. Debasish Mishra. Thank you, and over to you, sir.
A very good evening to everyone, and thank you for taking the time to join the call. Let me begin with a brief view of the macro environment. The second quarter was marked by steady domestic fundamentals and broadly stable earnings, even as global pressures from higher crude, firm US yields, and a stronger dollar triggered foreign outflows and bouts of volatility. Despite this, strong domestic participation helped to absorb the outflow shock, reflecting the ongoing shift of household savings into financial assets and keeping overall market sentiment resilient. Now, a brief about the mutual fund industry. Mutual fund quarterly average AUM expanded by 13% year-on-year and 5% sequentially as on 30th September 2026, touching INR 87.5 trillion at the end of September 30th. Monthly SIP inflows continue to show strength despite market volatility and touched all-time record high of INR 32,490 crore in September 2026.
On fixed income, debt AUM saw a 5% year-on-year moderation while liquid AUM recorded a strong 27% increase. Passive AUM grew 23% year-on-year, highlighting sustained investor interest. Overall, industry inflows remained constructive despite short-term volatility across all categories. Industry continued to have a positive new customer addition, reaching out to 6.3 crore unique customers, increase of 11% year-on-year. Now let me tell you the performance of SBI Funds Management. Your company sustained its leadership in the industry's quarterly average AUM market share of 15%. Our mutual fund quarterly average AUM stood at INR 13.14 lakh crore or INR 13.14 trillion, registering 10% Y-o-Y growth compared to INR 12 lakh crore in the same quarter last year. As of September 30, 2026, our active quarterly AUM was INR 8.99 lakh crore, reflecting 9% year-on-year increase, and our five-year CAGR was 17%, backed by stable performance and sustained investor flows.
On passive front, we remain the largest passive asset manager with quarterly average AUM of INR 4.15 lakh crore, up to 11% year-on-year, further strengthening our leadership in the segment. On the alternate side, PMS and advisory, our QAAUM, that is quarterly average AUM, stood at INR 13.32 lakh crore, broadly in line with the expectations. While the previous quarter saw a one-time relocation of a large mandate, it doesn't have any material impact on our revenues and the underlying business momentum remains stable. Our AIF platform continues to scale well with quarterly average AUM at INR 7,437 crore, reflecting 27% year-on-year growth. To further strengthen and deepen our AIF capabilities, we have also added a dedicated business head for the AIF practice, bringing sharper focus to product expansion and institutional engagement. Offshore funds contributed approximately INR 42,100 crore to the overall AUM.
Gross margin across equity, debt, liquid, and passive strategies remained stable during the quarter, and there has been a continued expansion in gross yields on a year-on-year basis. Our unique customer count increased by 10% during the year, rising to 1.85 crore as of September 30, 2026. Our SIP AUM rose to INR 2.07 lakh crore with a 15% year-on-year increase. Monthly SIP inflows continue to remain steady at about INR 3,900 crore. We continue to maintain one of the largest distribution networks in the industry, supported by nearly 136,000 distribution partners. This includes over 125,000 independent financial advisors, over 10,000 national distributors, and over 96 banking partners, including State Bank of India, supplemented by 23,000 plus SBI branches and 297 SBI Funds Management branches, our branches. This extensive reach enables us to service investors across more than 98% PIN codes in the country.
Our strong presence across tier 2 and tier 3 cities is reflected in the healthy B30 contribution, with nearly two-thirds of SIP inflows originating from these markets, underscoring our expanding reach and commitment to broad-based financial inclusion. Let me brief you on the new product launches. We continue to maintain a strong product pipeline across mutual fund, SIF, PMS, and AIF with a clear emphasis on differentiated investor-focused offerings. During Q2, we launched five new products, including one SIF, further strengthening our overall product suite. Among the filed offerings, both the Magnum Equity Ex-Top 100 Long Short Fund and SBI Balanced Hybrid Fund saw stronger investor responses. Our Magnum Equity Ex-Top 100 Long Short Fund closed its NFO as one of the largest funds in its category. Our GIFT City franchise continues to scale well, supported by the launch of SBI Global Thematic Advantage Fund.
This initiative enables the investors in India to access global investment opportunities through LRS route. We are enhancing our capabilities across active, passive, and alternate strategies with strong traction in AIF, PMS, and SIF and growing international reach through GIFT City and offshore mandates, reinforcing our ability to serve rising India-focused demand. Now I will brief you all technology and digital improvements. We continue to strengthen our digital-first approach. Today, 94% of our transactions are done digitally, supported by stronger adoption across InvesTap, MyKRA, and partner platforms. InvesTap has grown into one of the largest digital investing apps in the industry with over 4.3 million, that is 43 lakh, registered users. Monthly digital volumes now exceed 1.4 million transactions, and our ongoing investment technology, AI, and automation are helping us to scale efficiently, enhance distributor productivity, and deliver seamless experience to investors.
We recently showcased our new tech platform, that is called Aram, in the Global Fintech Festival in Mumbai. Aram is one of the first assisted digital onboarding solution built specifically on first-time investors. It enables Aadhaar-based biometric KYC, folio creation, and first investment in a single, seamless journey altogether. Importantly, it helps us to reach customer segments that remain outside the formal financial ecosystem, strengthening our financial inclusion efforts. Aram also integrates digital PEKRN, that is PAN exempt KYC reference number.
This is for the customers without a PAN card, allowing us to extend mutual fund access to the masses in a simple and compliant manner. Coming back to the financial performance for H1 FY 2027, operating revenue reached to INR 2,336 crore, up to 12% from INR 2,089 crore in the same period. Operating profit rose to INR 1,797 crore compared to INR 1,626 crore in H1 FY 2026, 11% increase.
Profit after tax came to INR 1,566 crore in H1 FY 2027. Our strong net worth of INR 7,270 crore as on September 30, 2026, continues to support strategic investment in scale, capabilities, and long-term value creation. To conclude, our strategy will focus on 4 key pillars: democratizing wealth creation, accelerating digital delivery, strengthening investment performance, and building new growth engines. With this clear agenda, we aim to deliver consistent outcomes for our investors and continue to build a strong, technology-driven, and future-ready franchise. Thank you for joining the call. We now look forward to your questions.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Shriyansh Jain from Motilal Oswal Financial Services Limited. Please go ahead.
Yeah. Thank you for the opportunity. A few questions. Firstly, if I look at your flows, we have seen a very strong traction in September. If you could just highlight some data points around that number as we know how was the exit flows in September for us comparing to the back book market share, how has been the flow market share on the equity side, the equity plus hybrid side? That would be our first question. Second question is on the cost front. We have seen a significant increase, both sequentially and Y-o-Y, in terms of employee expense as well as other expenses. So what has driven this, and what should we think about these costs from a folio perspective? Last question will be on the yield front, where we have seen a marginal dip in terms of yields sequentially.
Is it just attributable to the telescopic structure, or is there anything else? Also, if you could share the yields across equity, debt, liquid, et cetera. Yeah, thanks.
Yeah. Thank you for the question. I will tell you the flows in active equity, passive, and liquid. I mentioned the numbers. Y-o-Y, it has gone up, our AUM has INR 11,995 billion-INR 13,140 billion. Active equity AUM grew by 9% Y-o-Y to INR 8,986 billion. Passive, 11% Y-o-Y to INR 4,154 billion. Liquid AUM has seen a strong traction with INR 1.2 lakh crore, INR 1.2 trillion, and 31% Y-o-Y. SIP, I mentioned already, it is 15% Y-o-Y growth, and monthly SIP flows are nearly always at INR 40 billion. Coming to your second question on the cost factor. Yes, we are heavily invested into a few technology and human resources in the last quarter, that is September quarter. These are quite kind of one-off instances that our cloud infrastructure, our AI-driven systems, and we have taken new heads for alternatives.
All these have been a one-time kind of factors, of cost in the quarter 2, which will not be repeated in the quarter three. For the yield part, I will ask Srinivas please comment.
Yeah. Thank you, sir. On the yield, I think the marginal dip is basically you are comparing our last year H1 to now. When you look at it from a Q1 to Q2, I think is what you asked. There has been just a minor dip because in Q1 we had seen some significant lower cost at operating cost level. Which again, because of a little higher cost this time, the operating profit has marginally come down. From a yield point of view, our equity yield continues to be strong. In fact, right now at Q2 FY 2027, equity yield would be closer to about 62, 63 bps on an average. Our debt yields are in the range of about 34, 35 bps. Liquid around 11 and a half, 12 bps. That is the range that we have.
These are usually competitive or close to best in class in this category.
Yeah.
Thank you.
Thank you. The next question is from the line of Mahek Shah from Emkay Global. Please go ahead.
Yeah. Hi. Thank you for the opportunity. My first question was on the other expenses. You mentioned that there were some tech-related costs which were there in Q2 and Q3 onwards, you would see largely these costs not coming back. Should we take it as the other expenses for the balance of the rest part of the year to be in line with the Q1 number. That was my first question. Secondly, we have almost added 1.9 million fresh SIPs during the quarter. Could you just help us from which channels these SIPs are being sourced. I was particularly looking if this was largely driven by SBI channel or any other channel. Yeah.
Yeah. Thank you for this question. You have rightly pointed out, this one time investment in IT and human resources will be definitely moderated. It will be reduced to a large extent. A very small part may remain till the year-end, but however, we are very mindful of these expenses. They are giving us large dividends for future. My take here is, these are gradually coming down because our investment in AI and cloud infrastructure, as well as the key hiring will for their lifetime kind of thing. Now coming to the SIP inflows. Yes, the SIP inflows has been from all the channels and including SBI, but we have a large channel number of mutual fund distributors. Our robo, our RIAs, have all contributed to the mutual fund SIP inflow. It is wholesome flow, not specifically to SBI or any specific channel.
Got it, sir. If I can just squeeze in one more question. If we look at the employee costs, you just mentioned that we are investing on the talent side. Could you just help us with a full year guidance or employee cost growth over the next one or two years? If you can just help us with that number.
As you are a large player in the market, we are entering into also different expansion fields like AIF and the PMS and the alternates. There, all we have investment going on. Also, as we are growing in the market, our sales force, our distribution network also increasing. These are all proportion to the growth factor. Of course, we did a significant hiring in this quarter, which will not be there in next quarter. Moderation definitely is there. As you grow, we will be growing in this. One-time expenses which happened this quarter may not be repetitive in the next quarters.
Got it, sir. Thank you so much.
Thank you.
Thank you. The next question is from the line of Supratim Datta from Jefferies. Please go ahead.
Hi, sir. Thanks a lot for the opportunity. My first question again, is on the cost bit. I do understand that there have been one-off hirings and investments this quarter. If you could help me understand that, the INR 50 crore additional spend versus last quarter, what proportion of this would recur going ahead and what proportion will not recur? If you could give me some color, that would be helpful. Secondly, wanted to understand that on the recruitment that you are doing on the AIF side, what are the strategies that you're looking at rolling out? How do you see this business shape up over the next three, four years? If you could give some color on that would be helpful. Lastly, we have seen markets being very volatile. You have done fairly well in garnering SIPs.
But if you could give us some color around the investor sentiment or during your discussion with distributors, what are you finding with respect to investor sentiment? How is that tracking and is there any divergence in behavior that you are now seeing versus maybe three, four months back? That would be helpful. Thank you.
Yeah. Hi, Supratim. Thank you for the question. On the cost side, I think, what you should assume, as a recurring part is around 50%-60% of it should continue because, these are all senior management sort of investments that we have done on people. Our technology also, while some of these items will drop off after Q2, there will also be some incremental investments as our business grows in terms of enhancing our capability to meet customer needs on the digital, as well as certain AI-related investments that we plan to continue as time goes on.
Coming to the AIF-related business and strategies. We being largest fund house also entering into the AIF field long back. Although the basket or the size is not that large, but still we have AIF followers in our kitty. What we are doing now is we are looking at the private equity and private credit space more closely by selecting a few select individuals, and we filed in the exchange also. We have taken a head of AIF in our company and building a strong team to drive alternatives in both private equity and private credit space. I cannot give exact numbers right now. But yes, in the years to come, it will be one of the books which is giving us good volumes in top line as well as bottom line. I will come back to your very important question about sentiments of investors.
In the last quarter, when the market is volatile and market is really not coming to anybody's expectations, there is also a safety net or a safety feeling coming back to the customer's mind. That is why, you see, the SIP inflows are growing. Although markets are quite volatile, and I think you can also find out the point-to-point Nifty is coming down. I think YTDs have come down 8.2%. But the SIP flow is increasing. So we are now looking those kind of sentiments where SIP flow or wherever the hybrid schemes, these are things which are now in demand and where the investor sentiment is growing much more. In fact, to supplement your question, our focus as the largest fund house is also increasing investor awareness on this kind of volatile market scenarios.
Much of our focus also on the B30 locations where we are also starting the SIP journey of new investors with a proper understanding and also proper knowledge about those products.
That's very helpful. Sir, just one follow-up on the AIF side. How much capital are you looking at committing into that business going ahead?
We are not a subsidiary kind of thing. We're starting with our own division for some years. One, it is a full-fledged kind of business unit. Then we'll think of a sustained capital allocation. Now it is a part of our own system. I'll also ask my Chief Business Officer to supplement the answer about sentiment of customers because he is widely visiting the places.
Yeah. Thank you, sir.
Sure.
Hi, good evening. Just to add to what MD sir had to say, at least our experience of when we've been traveling the country and meeting with a lot of distributors, I think, broadly, there are two segments of investors. One, obviously, are people who have continued to remain in the mutual fund journey for a very long period of time and have maybe experienced a few volatile periods during their investment journey. So there is a lot of maturity that those segments of investors are showing. I think the anxiousness is probably amongst new investors who may have come into the industry in the last 2, 3 years.
But I think there's a lot of effort which we feel as SBI Mutual Fund and with the distribution partners in terms of how to educate these investors and sort of give them enough examples to showcase that long term is actually the right investment mantra. Over long periods of time, people have made very healthy CAGR returns on their investments. The testimony of that is if you see the September net sales numbers of the industry, the number came in at about INR 38,000 crore. What does it mean? That in spite of a INR 32,000 crore of SIP book, I think there was incremental about INR 5,000-INR 6,000 crore of lump sum purchase which investors have made. I think that also gives us a lot of confidence that investors definitely are maturing and have matured a lot.
Every opportunity that they're getting to sort of look to add into the mutual funds, I think they've been very actively doing it.
That's very helpful. Just one thing here. Is there a difference in the sentiment when it comes to assisted channels and unassisted channels or fintech platforms?
We have not done any study on that, but I will again request Manish to give an overall view.
Sure. Yeah. So, definitely, I think, in these periods of time, at the end of the day, it is investments and money. So definitely when there is advice that maybe clients are getting through their distribution partners or through relationships managers of the banks or national distributors they deal with, their understanding probably is much better. As far as the fintech platforms are concerned, the decision to buy is also being taken by the investor. The decision to act is also being taken. But even in that space, I think one thing which we have been observing that is a lot of these platforms have also been taking up a lot of initiatives at their end to communicate to those segments of investors. It could be through maybe digital IPs that they have been doing.
It is through a lot of YouTube seminars that they have been doing with mutual funds. Even at SBI also, we have been doing a lot of such videos of our fund managers or just general question and answer sessions, which they have been uploading on their website, all of that and writing a lot of blogs. They are also doing their bit to see to it that they are able to reach out to these investors and communicate that story of long term is how you look to create wealth.
Understood. That is very helpful. Thank you.
Thank you.
Thank you. The next question is from the line of Shreyas Pimple from Nomura. Please go ahead.
Hi. Thank you so much for the opportunity. My first question was on cost. While you highlighted that cost has been elevated in Q2, do we have an ESOP policy in place? In which quarter can we expect this higher cost due to ESOPs coming in? If you can explain that, please.
Yeah. So we have already an ESOP policy in place, and it is fully active, and we don't expect any cost implications in the coming quarters in this. Whatever the regular discretion happens, that will continue, not an exceptional cost increase due to ESOP policies.
Sure. That is very helpful. My second question was on SIF. We have seen strong AUM growth from around INR 35 billion to INR 44 billion in this quarter in SIF. Majorly because of the new SIF that we have launched. My question was, ex of that inflow from that one SIF launch, how much is the inflow coming into SIP as the industry and what is the inflow share of SBI MF in that SIP inflow coming for the industry?
The unfortunate part is we don't have SIF-specific SIP data available in the market, but we can hazard a guess it's a smaller number because SIF is a high-ticket investment value. We have seen both traction in the new fund that we launched where we've got, of course, a record collection. We also, on our previous fund of ours, we've also got net inflows there. So in a way, we have about 16%+ market share on that particular segment and continues to grow. We have only done two funds till now, and we still have another four more to go out of the total six SEBI-approved stuff. You could expect more of the SIF products to come in the coming days from our side.
Sure, sir. Just one thing. What would be the industry-wide SIF inflows, if you can help with that maybe per month or per quarter?
I can pull that up, but I don't have it handy at this point of time. I think that most of these flows are because of new funds being launched. So I think that will look fairly anomaly, including ours, because the SIF itself is a new phenomenon. So what I feel is most of these funds, there are quite a few of them now, all of them have been launched in the last quarter or so, majority of them. So I'm assuming all of these flows will be NFO-related flows. There'll be a significantly small portion coming from non-NFO.
Yeah. In fact, I'll supplement what Joint CEO said. SIP, for the long time, has been a small investor base, and we have seen that contribution of SIP from B30 cities is much more, like 65% is from B30 cities. So there, the mutual fund schemes are more prominent than SIF. SIF-related SIP is coming up, but it has to catch up much more.
Yeah. Thanks for that. Another question was on employee cost, actually. You highlighted that there were some hires and because of that, we had a higher employee cost. The cost quarter on quarter was higher by around INR 27, 28 crore. How much of that would have been one-time hiring costs? What would repeat in the next quarter and what would not? If you can throw some light on that.
Shreyas, you should look at the Q2 cost as an ongoing run rate. Sequentially, you see a bump up in Q2 versus Q1 because Q1 had some write-backs built into that. From your perspective, you should look at the Q2 cost as a run rate going forward.
Sure. That is very helpful. The last question was on yields. While our peers have seen a quarter-on-quarter increase in revenue yields, we have seen a slight moderation in the yields. While I understand you highlighted that it is majorly because of the increase in equity AUM, is there any distribution commission change or change in mix of the distribution? So higher distribution commission channel getting higher share of the distribution mix. Is that the case?
Let me take this, Shreyas. I think if you aggregate this breakup rather than looking at it overall yield, I think at every category, we are almost one paise here or there from FY 2026 to FY 2027. I do not see there is any major change in individual category yield. It is just the asset movement, which is the difference here. Otherwise, there is really no change in yield. That means that there is neither any change in distribution cost at a quarter-on-quarter level from the front side. These numbers have not changed dramatically. It is just a change in the overall asset mix.
We already clarified in last quarter that this April 1st onwards, we are even neutral in terms of telescopic new pricing methodology of the regulators. That has been already factored. So there is no change in yield. Rather, I could see, as rightly said by Joint CEO, that yield has year-on-year has gone up by 1 or 2 bps in this quarter.
Fair enough. Thank you so much, sir, for answering my questions. All the best.
Thank you, Shreyas.
Thank you.
Thank you. The next question is from the line of Lalit Mohan Deo from Equirus Securities. Please go ahead.
Yeah, hi. Good evening, and thank you for the opportunity. Sir, just 2, 3 questions. One on the alternative side. We are seeing some decline in the PMS AUM. Could you tell us what could be the reasons for them? Secondly, if you could break up the overall revenue between the MF and the non-MF side?
Yeah. I think we had actually talked about this some time ago. One of the large investors mandate got reallocated, and as part of the reallocation, this impact has happened on our PMS advisory business. It's an advisory business, so it is technically non-material when it comes to the revenue side of it, but it did impact us in terms of overall AUM. From a mutual fund, non-mutual fund point of view, our mutual fund, like you said, is around INR 13.5 lakh crore, and non-mutual fund today is also at the same kind of level. We are like a 50-50 kind of a ratio between mutual fund and non-mutual funds today.
Revenue.
The revenue, obviously, mutual fund is a high revenue product. In the mutual fund, non-mutual fund, if you remove the advisory services, we are roughly around 35 to 40 basis points as an average when it comes to offshore advisory and our alternative asset category.
Sure, sir. And sir, any new products in pipeline for this quarter and for the remaining half of the year?
Yes. We are already in process of launching a few products, and that is to consolidate our position in the market. Also, to have how the market sentiment goes on. We watch very closely, and mostly value-based or strategic-based products will be in pipeline. We will launch as per the market conditions and also when we feel like there is investor demand on this. Yes, once we file with SEBI, we will be able to give you more data, but there are plans to launch Category III in the coming months together. Obviously, we are building the Category II capability with the new head of AIF joining us. This is going to be an exciting period in coming days. You will see us launch more capable products, not just in Category III, which we have done successfully, but in Category II also in coming days.
Sure, sir. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Mohit Mangal from Centrum Broking. Please go ahead.
Yeah. Good evening, everyone, and thanks for the opportunity. My first question is towards the B30. I was looking at your presentation, and it says that the B30 SIP contribution has been around 65%. I just wanted to know are the investors in those B30 are interested in our flagship schemes and how long typically they keep the investments in these schemes?
Yeah, very good question. I think our focus has been on B30 for a long time. If you look at the same slide, 98% of them are more than 36 months. In fact, 36 months is a regulatory requirement, but that is more than even some years, like 5 to 10 years. So these customers are mostly moderate risk takers. As I mentioned before, the knowledge, the awareness programs we conduct now in B30 cities makes us to understand and believe that the investor education has been reaching to the last mile. That is why the SIP contribution is 65% and it is more than 3- 5 years kind of range in these B30 cities.
Now, what we are trying to do is we're trying to, again, do more of investor awareness, more of investor education, and most of regional language-based models, more of stories, more of learnings points. We'll consolidate our B30 kind of offerings much more in the coming quarters.
All right. This is helpful. Sir, second is basically SEBI has proposed mutual fund-only PMS. Wanted to know your thoughts and does our SBI AMC have any plans to have a new team or how are we going about it?
Yes, this is something that we as an industry have been pushing for, and SBI AMC also has been one of them who've been asking for, with helping us build a lower entry barrier PMS product. We will definitely build an internal team in terms of fund selection process because this is an important step. I think my understanding is this kicks in in April next year, and before that we'll be able to put our team together. Of course, this is a product solution that we will definitely be part of in coming days. But the whole idea is to put a fund selection team who can design solutions that we can then make that offer. But certainly, you will hear from us on this category in coming days.
Understood. This is very helpful, sir. Thanks, and wish you all the best.
Thank you, Mohit. Thank you very much.
Thank you. The next question is from the line of Abhijeet Sakhare from Kotak Securities. Please go ahead.
Hi. Good evening, everyone. My first question was a clarification on the cost comment. You said the employee cost is this new base that has been set in the second quarter that should continue. But earlier there was one more comment which I wanted to clarify was around 50% - 60% of cost hike being more like the recurring one. Just wanted to clarify those two points.
No. Yeah. The cost structure which one time happened after hiring will go down by 30% - 40%. So 60% will be what will be kind of recurring. What looks a little aberration is that sequential quarter. So that looks quite a high figure. All those hirings, all the one times have been over. So I think 30% - 40% only moderated, 60% will continue for the coming quarter.
Yeah. It's definitely a new base. Last quarter, in fact, as a sequential quarter, there was also some exceptional item that was there on the HR cost or the people's cost. That again is a base impact that you will see. Also I think the question on what Amol was trying to say was largely around the other expenses side of it.
Which is where we talked about tech expense and part of it. On the tech expense, we expect a part of it to continue because some cloud compute and AI cost will be there. We are also coming up with our own data center, which is going live in a couple of months. Some of these costs would get moderated as we move our cloud instance to a long-term instance. These are actually investments that we're doing to improve productivity, and on that, I think it's a capital investment for us. It's kind of a capital investment for us.
That's good. My second question was on the SBI versus other channels, if it's possible to quantify the contribution in terms of flows or any qualitative color if there is a slightly higher difference between how those two channels are behaving, let's say, the quarter gone by and maybe comparable period last year.
I think the better way to look at this is to look at where we are improving. I think what happens in an SBI kind of a channel is that we've already made significant inroads there. In the other channels, we've actually made significant inroads in the last quarter. Especially on the banking side, we've actually moved the needle. We expect that in coming days, other channels numbers also to start looking up significantly. State Bank of India obviously has a huge potential when it comes to new customer acquisition because of the base itself, and we've been talking about that 530 million customer base that the bank has and the potential for us to tap into it. That will continue to be there. Our real benefits in market share growth is now coming from channels like bank and other distributors.
SBI Group or SBI channel contributes around 20% of the net inflows, which is also almost the same level in the last year quarter also. Things have not drastically changed for SBI or for us.
Got it, sir. Last question was, again, some qualitative feedback if you can give on what has been the feedback on fund performance, especially from the large independent channels.
Yeah. I will ask investment head to respond. Yeah. Dinesh.
Sure. Hi. Being a large fund house, we have funds across asset classes, across investment styles. Right? At any given point in time, you will always see essentially certain funds doing particularly well and certain funds not doing so well. But if I have to aggregate it, the one encouraging trend for us is if you look at recent performance, it has definitely improved in aggregate terms. So that is definitely an encouraging trend. Another data point to share is when you look at the aggregate equity plus equity-oriented hybrid schemes, and when you look at their performance over the last three years, last five years, they still look quite healthy. Over the last five-year period, roughly 70% of our funds are in the top two quartiles. Even if I look at the last three years, close to 45% of the funds are in top two quartiles.
If I then sort of further reduce the time horizon, that number has again moved up above 50%. So at the margin, the trend is definitely improving. But as I said earlier, because we are quite big and we have a variety of funds, you will always essentially see at any given point in time, some sort of variation in fund performance.
His question is how the market is kind of looking at it. I think we have seen some really green shoots and some of our distribution partners actually picking up some of these strategies and scaling them. We hope in coming quarters this will continue, and we will build on that.
What we are definitely seeing is that wherever some of our flagship schemes, if they have improved in performance, the market is clearly recognizing that again. So flows are definitely sort of following in these schemes.
That is very good.
The charts we have almost in one category, we have some 70%-80% of net new money. It's clearly showing in the new money that's coming in.
Got it. Thanks a lot, and all the best.
Thank you, Mr. Abhijeet.
Thank you. Participants who wishes to ask a question, please press star and one. As there are no further questions from the participants, with that, we conclude today's conference call. I would now like to hand the conference over to management for closing comments.
Yeah. On behalf of SBI Funds Management, we thank everyone for joining the call. Being the largest fund manager of the country, we would like to keep this trust, efficiency, productivity always on our target. We will come back again to you in the next quarter with better results. Thank you.
Thank you.
Thank you. Ladies and gentlemen, on behalf of SBI Funds Management Limited.