Maharashtra contributes 37% equity MF AUM

If you go by assets in absolute terms, you will find that 37% of the total equity AUM is from Maharashtra. AMFI data shows that of Rs.9.80 lakh crore of total equity assets, Rs.3.64 lakh crore has come from Maharashtra.

AMFI data shows that Maharashtra continues to dominate the mutual fund industry with the highest equity AUM. Maharashtra recorded an increase of nearly Rs.1.61 lakh crore or 80% in one year. Equity AUM includes pure equity funds, ELSS, balanced and equity ETF AUM.

Experts also pointed out, HNIs who typically invest in debt, have started to put money in balanced advantage and arbitrage funds as these funds are tax efficient and are less risky than pure equity funds.

New Delhi followed Maharashtra with equity AUM of Rs.89,712 crore. It witnessed an increase of Rs.36,138 crore or 67% in one year.

Gujarat was third in terms of equity participation. The equity AUM of Gujarat almost doubled in one year. With equity AUM of Rs.77,064 crore in December 2017, Gujarat recorded an increase of 91% from Rs.40,322 crore in December 2016.

Distributors say that retail investors are shifting to mutual funds from direct stocks.  “In Gujarat, the herd mentality is very prominent. Everyone invests in direct stocks. After a few bad experiences in direct stocks, they have realized the advantages of investing in mutual funds. Also, first time investors are choosing to invest in mutual funds. Finally, cities like Surat and Vadodara are picking up pace as both professionals and self-employed people are investing in mutual funds through SIPs,” said Surat-based distributor Amit Thakkar.

Karnataka and West Bengal stood at fourth and fifth position respectively in terms of equity AUM. 

The equity AUM of West Bengal increased by 79% to Rs.57,000 crore in one year. Kolkata-based Malhar Majumder of Positive Vibes attributes this to higher participation of retail investors in this region. "Individuals are now looking at mutual funds as a preferred investment vehicle which was not the case earlier. We are seeing fresh inflows in equity funds. Thanks to Mutual Funds Sahi hai campaign, we have now been witnessing clients walk in to enquire about mutual funds,” said Malhar.

Investors in small states and union territories such as Sikkim, Mizoram, Nagaland, Tripura and Andaman and Nicobar Islands too have been increasingly investing in equity funds.

In percentage terms, Andaman and Nicobar Islands has recorded the highest growth of 259% in equity AUM from December 2016.

Overall, the industry recorded an impressive 77% growth in equity AUM. AMFI data shows that industry added around Rs.4.30 lakh crore to its equity AUM to reach nearly Rs.10 lakh crore in one year.

State-wise growth in equity AUM

Figures in Rs.crore

Source: AMFI data

Others’ indicates assets from investors whose KYC is incomplete.