Maharashtra continues to dominate in terms of contributing the highest equity AUM in the industry, shows the latest AMFI data.
As on January 2016, Maharashtra contributed Rs. 1.51 lakh crore or 39% to the total Rs. 3.84 lakh crore equity AUM of the industry. The state’s contribution was highest (Rs. 4.31 lakh crore) in debt funds too.
As a result, Maharashtra contributed 43% or Rs. 5.83 lakh crore to the total Rs. 13.54 lakh crore AUM of the industry. Of this, India’s financial capital Mumbai alone contributed 42% to the total AUM of the industry. Since a lot of companies have their headquarters in Mumbai, it makes a huge contribution to liquid fund AUM.
The second highest contributing state was New Delhi with AUM of Rs. 1.42 lakh crore. Of this, Rs. 42,862 crore or 30% was concentrated in equity assets.
After New Delhi, Karnataka was the third largest contributor (Rs. 98,233 crore) in terms of AUM. Compared to Mumbai and New Delhi, Karnataka had a higher share (34%) in equity assets.
Interestingly, of the top ten highest contributors in terms of AUM, states like Andhra Pradesh, Uttar Pradesh, West Bengal and Gujarat had a good share of AUM in equity funds. Uttar Pradesh, Andhra Pradesh and Gujarat had 49%, 44% and 38% assets in equity funds respectively.
Highest contributing states in terms of AUM
|
State |
Equity |
Non-equity |
Total AUM |
Equity % to total AUM |
|
Maharashtra |
151,606 |
431,494 |
583,109 |
26% |
|
New Delhi |
42,862 |
100,011 |
142,873 |
30% |
|
Karnataka |
33,399 |
64,834 |
98,233 |
34% |
|
Gujarat |
30,895 |
50,408 |
81,302 |
38% |
|
West Bengal |
25,382 |
45,124 |
70,506 |
36% |
|
Haryana |
12,573 |
53,600 |
66,172 |
19% |
|
Tamil Nadu |
21,150 |
42,940 |
64,090 |
33% |
|
Uttar Pradesh |
21,692 |
22,577 |
44,269 |
49% |
|
Rajasthan |
8,173 |
30,746 |
38,919 |
21% |
|
Andhra Pradesh |
9,027 |
11,489 |
20,516 |
44% |
Besides the top ten contributors to AUM, states like Bihar and Madhya Pradesh too had a major chunk of assets concentrated in equity funds. Even though Bihar and Madhya Pradesh contributed less in terms of overall AUM, they had 71% and 65% assets in equity funds respectively. Of the Rs. 6,500 crore total AUM contributed by Bihar, 71% was in equity funds. Similarly, of the total Rs. 10,600 crore AUM contributed by Madhya Pradesh, 65% was concentrated in equity funds.
Fund officials say that distributors in these states generally concentrate on selling equity schemes. “A majority of distributors in these states sell equity funds. We need to now educate and train distributors about the importance of debt funds in these states,” said D P Singh, Executive Director & Chief Marketing Officer (Domestic Business), SBI Mutual Fund.
