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MF News AUM in T30 cities increase by 27%

AUM in T30 cities increase by 27%

The total AUM from T30 cities stood at Rs.18.75 lakh crore, as on December 2017, which accounts for 88.16% of the total MF AUM.
Padmaja Choudhury Feb 14, 2018

The assets from the top 30 cities increased by 27% in the past one year, shows AMFI’s quarterly geographical data. The total AUM from T30 cities stood at Rs.18.75 lakh crore, as on December 2017, which accounts for 88% of the total MF AUM. The total AUM in T30 cities was Rs.14.81 lakh crore in December 2016.

 

The financial capital, Mumbai, continued to remain at the top spot with the highest AUM. The AUM of Mumbai registered an increase of Rs.1.02 lakh crore in one year to reach an AUM of Rs.8.13 lakh crore in December 2017. Mumbai also witnessed the highest absolute change in AUM. Experts attributed the phenomenal growth to market gains, higher financial literacy and institutional presence.

Delhi followed Mumbai with AUM of nearly Rs.3 lakh crore that accounted for 14% of the total MF AUM.

Among the top five, Chennai overtook Bengaluru for the third spot. Chennai recorded AUM of Rs.1.50 lakh crore, which is 7% of the total MF AUM. In percentage terms, Chennai witnessed the highest growth in assets, at 77%, by adding Rs.65,404 crore in one year.

Chennai-based AK Narayan, of AK Narayan Associates, said that investors in Chennai are moving away from traditional investment options to mutual funds. “Earlier investors were conservative and invested in gold, real estate and fixed deposits. Investors are now shifting to equity mutual funds due to lacklustre performance of physical assets,” he said. 

Beyond the top five cities in the T30 category, Pune witnessed the highest growth in its AUM. The assets of Pune increased by 33% or Rs.19,130 crore to Rs.77,411 crore in December 2017.

In percentage terms, Coimbatore witnessed the highest increase in AUM, barring the top five. It saw a growth of 85% in its AUM, to Rs. 9,145 crore, in December 2017 as against AUM of Rs.4,939 crore in December 2016.

A Coimbatore-based distributor (pleading anonymity) attributes this to one individual investor. “The huge increase in the AUM is due to the investment of one particular individual. He invested around Rs.1,500 crore. If you remove this number, the growth in AUM will not be significant,” he said. 

Though the AUM of the top 30 cities has increased, it witnessed a fall in percentage terms. The total percentage share of the T30 cities has decreased marginally from 89.98% to 88.16%. Experts attributed it to the overall increase in MF AUM and the growing popularity of mutual funds in smaller cities.

AMFI data shows that assets from B30 locations grew from Rs.1.65 lakh crore in December 2016 to Rs.2.52 lakh crore in December 2017. The rate of growth in assets for B15 locations was 53% while the industry grew at 27%. Overall, B15 assets account for 11.84% of industry AUM. 

Recently, SEBI revised the definition of top cities and beyond top cities for additional TER. Now T15 and B15 have become T30 and B30.

AUM of the top 30 cities

Serial No.

Location

% of
AUM December 2017

AUM as on December 2017

% of
AUM on December 2016

AUM as on December 2016

Difference in AUM

% change in

1

MUMBAI

38.23

813024

42.09

692943

120081

17

2

DELHI

14.00

297733

15.18

249914

47819

19

3

CHENNAI

7.07

150355

5.16

84951

65404

77

4

BENGALURU

5.60

119093

5.75

94664

24429

26

5

KOLKATA

4.67

99315

4.67

76884

22431

29

6

PUNE

3.64

77411

3.54

58280

19130

33

7

AHMEDABAD

3.07

65289

3.06

50378

14911

30

8

HYDERABAD

2.10

44660

1.85

30457

14203

47

9

VADODARA

0.80

17013

0.73

12018

4995

42

10

JAIPUR

0.71

15099

0.68

11195

3904

35

11

SURAT

0.61

12973

0.58

9549

3424

36

12

CHANDIGARH

0.60

12760

0.53

8726

4034

46

13

LUCKNOW

0.60

12760

0.51

8396

4364

52

14

KANPUR

0.57

12122

0.53

8726

3396

39

15

NAGPUR

0.52

11059

0.44

7244

3815

53

16

GUWAHATI

0.43

9145

0.32

5268

3876

74

17

COIMBATORE

0.43

9145

0.30

4939

4206

85

18

LUDHIANA

0.42

8932

0.45

7409

1523

21

19

PANAJI

0.42

8932

0.42

6915

2017

29

20

INDORE

0.42

8932

0.35

5762

3170

55

21

PATNA

0.42

8932

0.35

5762

3170

55

22

RAJKOT

0.41

8719

0.34

5598

3122

56

23

BHUBANESHWAR

0.39

8294

0.36

5927

2367

40

24

NASHIK

0.38

8081

0.33

5433

2648

49

25

COCHIN

0.37

7869

0.43

7079

789

11

26

JAMSHEDPUR

0.28

5955

0.21

3457

2497

72

27

VARANASI

0.26

5529

0.21

3457

2072

60

28

BHOPAL

0.26

5529

0.23

3787

1743

46

29

RANCHI

0.25

5317

0.19

3128

2189

70

30

RAIPUR

0.23

4891

0.19

3128

1763

56

 

Total AUM in T30

88.16

1874868

89.98

1481374

393494

27

 

Total AUM in B30

11.84

251797

10.02

164963

86,834

53

 

Total MF AUM

100

2126665

100

16,46,337

480328

29

(In crore Rs)

Source: AMFI

 

 

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