assets under management 2019As the awareness regarding financial products, especially mutual funds, has started increasing, we are seeing higher investor participation. Assets managed by the Indian mutual fund industry have grown from Rs 22.60 trillion (lakh crore) in December 2017 to Rs 24.09 trillion in December 2018. That represents a 6.55% growth in assets over December 2017.

This growth is not attributed evenly to all the regions or states in India. As per data released by Association of Mutual Funds India (AMFI), Maharashtra has the highest AUM (Asset Under Management) contribution in Mutual Fund assets. Maharashtra is leading the bandwagon with Rs 990,800 crore of AUM out of which 32% are invested in equity assets and 68% are invested in non-equity assets. New Delhi follows Maharashtra and becomes a second highest in terms of AUM with Rs 228,500 crore, distributed as 40% in equity assets and 60% in non-equity assets. Bihar and Andaman and Nicobar Islands have highest allocation to equity assets which is 74%.

AUM Distribution

Geographical distribution of MF AUM

An interesting fact is even as Maharashtra leads in terms of total AUM, it doesn’t have maximum penetration and highest per capita AUM. Delhi and Goa are two states which have highest mutual fund penetration and per capita AUM of Rs 136,110 and Rs 110,280 respectively. Maharashtra has per capita AUM of Rs 88,170. This could be owing to the fact that Maharashtra is way bigger than Goa and Delhi combined in terms of area and population.

Top states by mutual funds AUM

State AUM (Rs Cr)
Maharashtra  9,90,800
New Delhi  2,28,500
Karnataka  1,76,200
Gujarat  1,68,600
West Bengal  1,27,700
Haryana  1,17,900
Tamil Nadu  1,09,000
Uttar Pradesh  97,000
Telangana  41,700
Rajasthan  40,400

Top states by per capita AUM

State Per Capita AUM (Rs Cr)
New Delhi  1,36,110
Goa  1,10,280
Maharashtra  88,170
Haryana  46,510
Karnataka  28,480
Gujarat  27,890
Sikkim  17,010
Tamil Nadu  15,110
West Bengal  13,990
Telangana  11,840

Mutual fund penetration

Statewise penetration of MF AUMHere the penetration is measured in terms of per capita AUM. These data points clearly indicate the trend. More educated and/or cosmopolitan population is keen towards investing higher in mutual funds. It won’t be far fetched to say that mutual fund industry is set on a long-term growth path. With rapid urbanisation, faster growth of MF space is on the cards.

Author
Priyanka Bharati

Priyanka Bharati is a senior personal finance analyst with RupeeIQ. She can be reached on priyanka.bharati@rupeeiq.com