Which is the richest state in mutual funds? 71% investment in only 5 states, report reveals big secrets

Business Desk – Mutual fund investment in the country is continuously creating new records. Due to SIPs worth crores of rupees every month and huge lump sum investments, the Assets Under Management (AUM) of the mutual fund industry is continuously increasing. However, the latest geographical report of the Association of Mutual Funds in India (AMFI) shows that a major part of the total mutual fund investment in the country is still limited to a few select states. According to the report, only five states have 71 percent of India’s total mutual fund AUM.

Maharashtra is the largest mutual fund hub, AUM of Rs 33.33 lakh crore

According to the latest data of AMFI, Maharashtra remains the largest mutual fund investment state in the country. The average assets under management of the state is Rs 33.33 lakh crore, which is the highest in the country. Delhi is in second place, where the average AUM is Rs 8.49 lakh crore. That means Maharashtra alone attracts more than four times the investment of second place Delhi. It is clear from this that Maharashtra is still the biggest center of the country’s mutual fund industry.

These are the top 5 mutual fund investment states of the country

Karnataka is at third place after Maharashtra and Delhi, where the average AUM is Rs 5.86 lakh crore. After this, Gujarat is at fourth place with Rs 5.69 lakh crore and West Bengal is at fifth place with Rs 4.02 lakh crore. Whereas, an average AUM of Rs 3.73 lakh crore has been recorded in Tamil Nadu and Rs 3.52 lakh crore in Uttar Pradesh. This also makes it clear that mutual fund investment is no longer limited to Mumbai and Delhi only, but is also spreading rapidly in other big states of the country.

These states also crossed the figure of Rs 1 lakh crore

According to the report, the average mutual fund AUM of states like Rajasthan, Telangana, Madhya Pradesh, Kerala, Andhra Pradesh and Punjab has also reached above Rs 1 lakh crore. This is an indication that investors in small and medium cities are also increasingly turning to mutual funds.

Only five states capture 71% of the country’s investment

AMFI data shows that Maharashtra alone accounts for 37 percent of the total mutual fund AUM of the country. Delhi’s share is 15 percent. The contribution of both Karnataka and Gujarat is 7-7 percent, while the share of West Bengal is 5 percent. That means, 71 percent of the total mutual fund investment of the country is concentrated in these five states. The remaining 29 percent investment is spread across all other states and union territories of the country.

Equity funds are the first choice in most states

According to the report, equity mutual funds are the first choice of investors in most of the states of the country. In Bihar, Arunachal Pradesh and Jammu and Kashmir, on an average 81 percent of the total AUM is invested in equity funds. This figure is 80 percent in Punjab, 79 percent in Rajasthan, 78 percent in Madhya Pradesh, 77 percent in Kerala and 76 percent in Uttar Pradesh. This shows that most of the investors are preferring equity funds for better returns in the long term.

The investment pattern of Maharashtra and Delhi is very different.

Despite being the largest mutual fund market in the country, the investment pattern in Maharashtra is different from other states. Here only 40 percent of the total AUM is invested in equity funds, while 60 percent is invested in non-equity schemes like debt funds and liquid funds. The picture is almost similar in Delhi also, where investment is divided between equity and non-equity funds in the ratio of 50-50 percent.

Mizoram made a different record

Mizoram has made a unique record in the AMFI report. This is the only state in the country where only 43 percent of mutual fund AUM is in equity funds, while 57 percent is invested in non-equity schemes. That is, Mizoram is the only state in India, where investment in non-equity mutual funds like debt and liquid funds is more than equity funds.

What do these figures say?

This report of AMFI clearly indicates that the scope of mutual fund investment in India is continuously increasing, but the largest share is still with the states with economically strong and financial activities. On the other hand, investor participation is also increasing rapidly in smaller states and Tier-2 and Tier-3 cities, due to which the expansion of the mutual fund industry is likely to accelerate in the coming years.