Maharashtra records the highest growth in equity assets

Close to half of industry’s assets are concentrated in Maharashtra. Of this, a large share (42% as on December 2015) of AUM comes from the country’s financial capital Mumbai.

Of the total Rs. 13.55 lakh crore industry AUM as on March 2016, 44% or Rs. 5.93 lakh crore assets are concentrated in Maharashtra. Equity AUM (including balanced funds and equity ETFs) accounts for 27% or Rs. 1.62 lakh crore AUM of the Rs. 5.93 lakh crore AUM, which is the highest across all states in absolute terms.

“A majority of equity assets are channelized from Mumbai because there is an investment culture here. People are ready to take risk for higher returns. After Mumbai, Pune is fast emerging as a focus market for many AMCs,” points out Vinayak Sapre, a Mumbai based IFA. AMFI data shows that Pune’s market share in the total AUM of the industry has gone up from 3% in 2011 to 3.62% in 2015.

If we look at the growth in equity assets in FY14-15, Maharashtra continued to dominate with the highest growth in absolute terms. Maharashtra’s equity assets went up by Rs. 25,360 crore from Rs. 1.36 lakh crore in March 2015 to Rs. 1.62 lakh crore in March 2016. After Maharashtra, the second and third highest growth was recorded by New Delhi (Rs. 12,942 crore) and Karnataka (Rs. 3,572 crore) respectively. 

“Maharashtra has the highest AUM share because a lot of institutions operate from here. The concentration of equity assets depends on the level of activity in a particular state by AMCs and the investment culture. We are trying to educate people about equities in other states too and there is a gradual increase in incremental flows from other states,” says D P Singh, Executive Director & Chief Marketing Officer (Domestic Business), SBI Mutual Fund.

State wise growth in equity assets

Barring Manipur and (other) states, all other states recorded a positive growth in equity assets.