Top 4 states and a Union Territory — Maharashtra, Karnataka, Gujarat, West Bengal and New Delhi — witnessed an average growth of around 27-30% in AAUM (average assets under management) in January 2024 on a year-on-year basis, according to a report by ICRA Analytics.
In terms of contribution, these 4 states and Union Territory accounted for nearly 68.46% of the total AAUM of Rs 52.89 lakh crore in January 2024, marginally down from a contribution of 69.43% in January 2023, stated the report.
The average asset under management of Maharashtra stood at Rs 21.69 lakh crore in January witnessing year-on-year growth of 27% from Rs 17.13 lakh crore in January 2023.
The AAUM of 3 states surged by around 30% on a year-on-year basis. New Delhi’s AAUM stood at Rs 4.52 lakh crore in January registering a growth of 30% from Rs 3.46 lakh crore in January last year. Karnataka’s AAUM stood at Rs 3.65 lakh crore — a year-on-year growth of 30% from Rs 2.79 lakh crore in January 2023. Gujarat witnessed an uptick of 30% in AAUM in January 2024 to Rs 3.60 lakh crore from Rs 2.78 lakh crore in January 2023.
The average asset under management of West Bengal surged by 28% from Rs 2.14 lakh crore in January 2023 to Rs 2.74 lakh crore in January 2024.
Interestingly, the smaller states and Union Territories beyond the top 10 states have been witnessing a steady surge in investments into mutual funds, data compiled by ICRA Analytics showed.
Haryana witnessed the lowest increase in average assets under management on a year-on-year basis. The state witnessed an uptick of 5% from Rs 1.63 lakh crore in January 2023 to Rs 1.71 lakh crore in January 2024. Lakshadweep witnessed the highest increase in AAUM on a year-on-year basis. The AAUM increased by around 998% from Rs 15.41 crore in January 2023 to Rs 169.27 crore in January 2024.
Pondicherry registered 31% growth in AAUM at Rs 3,193 crore in January 2024. Tripura witnessed 38% growth at Rs 2,053 crore while Sikkim witnessed 30% growth at Rs 1,780 crore.
Manipur witnessed a whopping 414% surge in AAUM in January 2024 at Rs 3726 crore.
According to Ashwini Kumar, Head Market Data of ICRA Analytics, mutual fund penetration has been steadily improving in smaller towns and cities backed by increasing awareness among people, the growing interest among retail investors for investing in equities through the MF route and the opening up of branches of AMCs (asset management companies) beyond the top 30 towns. The burgeoning middle class and rising financial literacy are prompting more and more people to resort to financial planning to accrue savings, particularly through the SIP (Systematic Investment Plan) route.
“The country’s strong macroeconomic fundamentals and resilient earnings growth have been aiding positive market sentiments and encouraging more retail investors to invest in equities, primarily through the SIP route. The participation of retail investors from smaller towns and cities has been steadily increasing, backed by rising awareness, financial literacy and access to products and services due to an increasing reach and penetration of AMCs. This, in turn, has led to a steady increase in the AAUM from states and Union Territories beyond top 10,” said Kumar. said.
In terms of existing penetration, the per capita penetration in Maharashtra is highest at Rs 1,69,300, with its AAUM accounting for nearly 77% of the GDP. The per capita penetration in Haryana is the second-highest. The per capita penetration in Haryana is Rs 56,420 with its AAUM accounting for 18% of the GDP.
Manipur has the lowest per capita penetration. In Manipur, the per capita penetration is at Rs 3,270 accounting for 3% of GDP. The number of fund house branches in Maharashtra is 246 while that in Manipur stands at 1.
FAQs
Maharashtra, New Delhi, Karnataka, Gujarat and West Bengal together contributed around 69 per cent of the mutual fund industry's AUM as of January 2024, according to a report by Icra Analytics.
Where did mutual fund come from in India? ›
With this broad objective India's first mutual fund was establishment in 1963, namely, Unit Trust of India (UTI), at the initiative of the Government of India and Reserve Bank of India 'with a view to encouraging saving and investment and participation in the income, profits and gains accruing to the Corporation from ...
What percentage of people in India invest in mutual funds? ›
Mutual funds and fixed deposits remain the top choices for financial investments among a majority of people, with 54% and 53% respectively favouring these options, according to the BankBazaar survey.
What is the state of mutual funds in India? ›
Current State Of The Mutual Fund Industry In India
Assets Under Management (AUM) in the mutual fund industry increased by 41% in the fiscal year 2021. The AUM was worth Rs 33.67 trillion as of June 30, 2021. The bond funds were the most appealing in fiscal 2021, with net inflows of Rs 3,299 crore.
What is the total investment of mutual funds in India? ›
As of December 31, 2023, the total AUM of the MF industry was Rs 50.78 lakh crore, and the share of debt assets was Rs 12.91 lakh crore, per industry body Association of Mutual Funds in India (AMFI).
Where do mutual funds come from? ›
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
Why mutual funds are growing in India? ›
According to Ashwini Kumar, Head Market Data of ICRA Analytics, mutual fund penetration has been steadily improving in smaller towns and cities backed by increasing awareness among people, the growing interest among retail investors for investing in equities through the MF route and the opening up of branches of AMCs ( ...
Where do most Indians invest? ›
Across India, savings bank accounts remained the most popular financial product. In a shift from last year, FDs overtook mutual funds to become the second-most preferred investment in the North (62%), East (61%), and West (59%).
What is the investment percentage of India? ›
India Investment accounted for 31.9 % of its Nominal GDP in Dec 2023, compared with a ratio of 34.8 % in the previous quarter. India investment share of Nominal GDP data is updated quarterly, available from Jun 2004 to Dec 2023, with an average ratio of 33.6 %.
Who is the largest group of investors in mutual funds? ›
The largest percentage of mutual fund–owning households, 89 percent, owned equity funds.
The Securities and Exchange Board of India (SEBI) is India's major regulatory agency for mutual funds. SEBI is responsible for regulating all elements of mutual funds, including the establishment of mutual funds, their operations, the administration of mutual funds, fees charged by mutual funds, and their performance.
Is mutual fund safe to invest in India? ›
Mutual funds are regulated by SEBI (Securities and Exchange Board of India), adding a layer of safety via implementing mandatory guidelines and safeguarding policies. Mutual funds are obligated to disclose their portfolio holdings and performance regularly, ensuring transparency.
Which mutual fund is best to invest in India? ›
Best mid- cap mutual funds to invest in India
Quant Mid Cap Fund stood out with a return of 72.27%, followed by JM Midcap Fund at 70.98%, ITI Midcap Fund at 69.42%, Mahindra Manulife Midcap Fund at 65.58%, and Motilal Oswal Midcap Fund at 62.61%.
Can NRI invest in mutual funds in India? ›
NRIs must have a NRO or NRE bank account to invest in Indian mutual funds, as AMCs cannot accept foreign currency investments. All investments by NRIs are made in Indian Rupees. Non-resident Indians (NRIs) often seek investment opportunities in India to secure financial stability for themselves and their families.
What is the future of mutual funds in India? ›
Mutual Fund Investing Future
The spike in flows can be primarily attributed to their openness, low-cost structure, and a change in tax laws for fixed-income mutual funds from FY 23-24. A shift towards sector-specific or thematic funds has also come to the fore, particularly in sectors like healthcare and technology.
Which is the largest mutual fund body in India? ›
1) SBI Mutual Fund.
Who launched first mutual fund in India? ›
The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched the Unit Trust of India (UTI). Mutual funds are broadly categorised into three segments: equity funds, hybrid funds, and debt funds.
Who is the founder of mutual fund in India? ›
The concept of mutual funds was invented in Europe in early 1770s. During a bleak economic situation, Adriaan Van Ketwich, a Dutch merchant created the world's first mutual fund in 1774. He pooled money from several individuals and created a diversified fund of bonds.
Who launched the first mutual fund? ›
The first open-end mutual fund with redeemable shares was established on March 21, 1924, as the Massachusetts Investors Trust, which is still in existence today and managed by MFS Investment Management. In the U.S., there were nearly six times as many closed-end funds as mutual funds in 1929.
