New Delhi, March 23 -- The recent downtrend in the Indian stock market has significantly eroded the market value of many asset management company (AMC) stocks. However, following the correction, valuations have turned attractive. With expectations of rising disposable income due to income tax relief, mutual fund inflows are likely to stabilize over the medium term. Against this backdrop, brokerage firm InCred Equities has turned positive on AMC stocks.

"The slowdown in net inflows and sluggish capital market performance in the mutual fund industry has already been factored in, and we now see a higher upside than downside," InCred Equities stated in a report on March 21.

As Mint reported earlier, inflows into equity mutual funds in Febru...