New Delhi, Sept. 15 -- Stocks of service providers to mutual funds have been under pressure since January, even when mutual fund stocks have fared better. The fall in stock prices is due to falling profits and revenues, driven by contract renegotiations by large asset management companies (AMCs) and selective discounts given to asset AMCs.

However, experts said diversification into new areas like alternative investment funds (AIFs) administration, the National Pension Scheme (NPS), and global fund administration may provide the next leg of growth.

Since 1 January, shares of registrars and transfer agents (RTAs) like KFin Technologies Ltd (KFin) and Computer Age Management Services Ltd (Cams) have dropped 28% and 24%, respectively.

Cons...