Three cities account for 56% of the industry’s AUM

Just three cities account for 56% of the industry’s total AUM. The country’s financial capital Mumbai, political capital Delhi and Silicon Valley Bangalore contribute a total of Rs. 13 lakh crore to the industry’s AUM kitty.

Mumbai ranks first with 37% of the industry’s assets (Rs. 8.81 lakh crore). Unsurprisingly, a large chunk of Mumbai’s assets (Rs. 3.03 lakh crore) are invested in liquid funds flowed by debt funds (Rs. 2.45 lakh crore) and equity (Rs. 1.73 lakh crore)

New Delhi follows Mumbai in second place with (12% share of industry AUM and Rs. 2.78 lakh crore of assets). Bengaluru comes in third place with (6% asset share and Rs. 1.49 lakh crore in assets). Apart from these three cities, Pune, Kolkata, Chennai and Ahmedabad have assets over Rs. 50,000 crore.

Analysis of the AUM data of the top nine cities by AUM reveals a similar trend too. These cities contribute 81% of the industry’s debt AUM and 91% of the industry’s liquid AUM. In comparison, they contribute 61% of the equity AUM of the industry. This may be due to higher concentration of corporates in these metros.

The trend reverses in smaller towns, which have higher allocation to equity funds. Certain smaller cities like Raichur, Proddatur, Arambagh have invested around 75% of their assets in equities.

Among the top 10 cities, Hyderabad has the highest allocation to equity with 37% of its assets invested in equity funds.

The data is based on industry report, which covers 95% of the industry. Others include investments whose KYC is incomplete.

Top 20 Cities AUM as on Jan - 2019 ( in Rs. crore)