Equity funds are gaining traction in states where the mutual fund industry has a minimal presence.
The latest AMFI data shows that of the total 36 states and union territories, 15 of them have over 50% of their total MF AUM in equity funds.
States having over 50% exposure to equity funds
Dadra Nagar Haveli, with 72% of assets in equity schemes, has the highest percentage of allocation to equity funds. Manipur, Daman & Diu, Bihar and Pondicherry followed this list with 61%, 61%, 60% and 58% assets respectively in equity funds.
All these five states and UTs account for less than 1% of the MF industry’s total AUM.
Apart from these 5 states and UTs, there were 10 others – Chandigarh, Jharkhand, Jammu and Kashmir, Kerala, Punjab, Nagaland, Uttarakhand, Madhya Pradesh, Uttar Pradesh and Himachal Pradesh that have over 50% exposure to equity funds.
Kanpur IFA Pavan Kumar Jaggi said that most investors in small towns are retail investors and they have long-term goals such as retirement and children’s education. Because of this, advisors suggest equity funds through SIPs to achieve such goals. Since there are hardly any institutional players in these states, allocation to debt funds is subdued.
Table of top 5 states and UTs based on the asset allocation in equity funds
|
States and UTs |
Total AUM as on June 30 (in core) |
AUM in equity funds as on June 30 (in crore) |
% of AUM in equity funds |
% of MF industry’s AUM |
|
Dadra and Nagar Haveli
|
300.38 |
216.8 |
72% |
0.01% |
|
Manipur
|
450.26 |
273.6 |
61% |
0.02% |
|
Daman and Diu
|
296.68 |
179.5 |
61% |
0.01% |
|
Bihar
|
18600.51 |
11208.38 |
60% |
0.7% |
|
Pondicherry |
1385.90 |
804.16 |
58% |
0.05 |
Further analysis of AMFI data shows that even balanced funds are popular among states and UTs, where the MF industry is yet to gain a significant foothold.
Andaman and Nicobar Islands, Lakshadweep, Daman and Diu, Jharkhand and Tripura are the top five states having the highest percentage of allocation to balanced funds. None of these states has more than 1% of the industry’s total AUM.
|
States and UTs |
Total AUM as on June 30 (in core) |
AUM in balanced funds as on June 30 (in crore) |
% of AUM in balanced funds |
% of MF industry’s AUM |
|
Andaman and Nicobar Islands
|
312.64 |
122.19 |
39% |
0.01% |
|
Lakshadweep
|
8.54 |
2.24 |
26% |
0.0003% |
|
Daman and Diu
|
296.68 |
56.63 |
19% |
0.01% |
|
Jharkhand
|
20,304.42 |
3575.85 |
18% |
0.8% |
|
Tripura
|
1159.55 |
169.12 |
15% |
0.04% |
In case of allocation to debt funds, however, most large states dominate the space as due to presense of corporates. Mizoram, Haryana, New Delhi, Maharashtra and Arunachal Pradesh topped the chart.
|
States and UTs |
Total AUM as on June 30 (in core) |
AUM in debt funds as on June 30 (in crore) |
% of AUM in debt funds |
% of MF industry’s AUM |
|
Mizoram |
366.47 |
266.56 |
73% |
0.01% |
|
Haryana |
125998.5 |
89046.9 |
71% |
4.88% |
|
New Delhi |
228603.85 |
131311.84 |
57% |
9% |
|
Maharashtra |
1080067.28 |
601608.37 |
56% |
42% |
|
Arunachal Pradesh |
652.02 |
356.81 |
55% |
0.03% |
Big states
In absolute terms, Maharashtra and New Delhi continue to remain the top two states having the highest proportion of industry’s AUM. While Maharashtra held Rs.10.8 lakh crore or 42% of industry’s total AUM, New Delhi held Rs.2.3 lakh crore or 9% of the industry’s AUM.
Karnataka, Gujarat and West Bengal follow this list of having the highest AUM in absolute terms.
In absolute terms, Maharashtra has the highest equity assets of 2.84 lakh crore, which is 26% of its total assets. New Delhi and Gujarat followed Maharashtra in absolute terms.
|
State |
Total AUM as on June 30 |
Market share |
Equity AUM (in crore) |
Debt AUM (in crore) |
Balanced AUM (in crore) |
Equity AUM (%) |
Debt AUM (%) |
Balanced (%) |
|
Maharashtra |
10,80,067.28 |
42% |
2,84,023.92 |
6,01,608.37 |
54,345.20 |
26% |
56% |
5% |
|
New Delhi |
2,28,603.85 |
9% |
3,765.54 |
1,31,311.84 |
10,883.02 |
37% |
57% |
5% |
|
Karnataka |
1,82,284.94 |
7% |
72,762.99 |
98,495.34 |
9,840.43 |
40% |
54% |
5% |
|
Gujarat |
1,79,102.78 |
7% |
75,224.56 |
86,213.74 |
16,775.88 |
42% |
48% |
9% |
|
West Bengal |
1,35,762.85 |
5% |
54,799.75 |
64,369.48 |
15,864.12 |
40% |
47% |
12% |
|
Haryana |
1,25,998.50 |
5% |
32,178.02 |
89,046.90 |
4,282.53 |
26% |
71% |
3% |
|
Tamil Nadu |
1,20,560.68 |
5% |
46,496.18 |
64,661.19 |
8,710.74 |
39% |
54% |
7% |
|
Uttar Pradesh |
1,03,334.16 |
4% |
53,424.46 |
38,562.62 |
10,983.05 |
52% |
37% |
11% |
|
Others |
74,221.88 |
3% |
38,401.28 |
25,178.72 |
9,972.70 |
52% |
34% |
13% |
|
Rajasthan |
44,939.94 |
2% |
21,130.63 |
20,613.37 |
3,057.45 |
47% |
46% |
7% |
|
Telangana |
43,405.94 |
2% |
16,939.60 |
23,494.70 |
2,581.65 |
39% |
54% |
6% |
|
Andhra Pradesh |
36,244.64 |
1.4% |
17,183.11 |
14,968.78 |
3,985.48 |
47% |
41% |
11% |
|
Madhya Pradesh |
33,054.71 |
1.3% |
17,489.31 |
11,786.56 |
3,631.29 |
53% |
36% |
11% |
|
Punjab |
29,432.91 |
1.1% |
16,050.83 |
10,896.96 |
2,425.08 |
55% |
37% |
8% |
|
Kerala |
26,705.33 |
1.0% |
14,785.03 |
8,645.32 |
3,144.75 |
55% |
32% |
12% |
|
Orissa |
22,230.20 |
0.9% |
9,881.23 |
9,485.74 |
2,769.67 |
44% |
43% |
12% |
|
Jharkhand |
20,304.42 |
0.8% |
11,395.40 |
5,261.76 |
3,575.85 |
56% |
26% |
18% |
|
Bihar |
18,600.51 |
0.7% |
11,208.38 |
4,894.47 |
2,419.87 |
60% |
26% |
13% |
|
Goa |
16,790.94 |
0.7% |
8,144.32 |
6,739.02 |
1,810.47 |
49% |
40% |
11% |
|
Chhattisgarh |
14,535.32 |
0.6% |
6,500.04 |
6,232.20 |
1,782.18 |
45% |
43% |
12% |
|
Assam |
12,294.76 |
0.48% |
5,396.11 |
5,399.42 |
1,447.49 |
44% |
44% |
12% |
|
Uttarakhand |
9,130.58 |
0.35% |
4,873.10 |
3,235.88 |
932.62 |
53% |
35% |
10% |
|
Chandigarh |
7,533.55 |
0.29% |
4,254.84 |
2,470.77 |
777.21 |
56% |
33% |
10% |
|
Himachal Pradesh |
4,817.49 |
0.19% |
2,420.39 |
1,921.51 |
462.92 |
50% |
40% |
10% |
|
Jammu and Kashmir |
2,962.90 |
0.11% |
1,647.37 |
954.54 |
351.65 |
56% |
32% |
12% |
|
Meghalaya |
1,785.63 |
0.07% |
735.71 |
833.02 |
203.25 |
41% |
47% |
11% |
|
Pondicherry |
1,385.90 |
0.05% |
804.16 |
405.70 |
171.92 |
58% |
29% |
12% |
|
Tripura |
1,159.55 |
0.04% |
453.07 |
536.78 |
169.12 |
39% |
46% |
15% |
|
Sikkim |
1,116.74 |
0.04% |
456.75 |
526.78 |
132.49 |
41% |
47% |
12% |
|
Arunachal Pradesh |
652.02 |
0.03% |
222.62 |
356.81 |
72.38 |
34% |
55% |
11% |
|
Nagaland |
641.22 |
0.02% |
346.79 |
224.28 |
69.45 |
54% |
35% |
11% |
|
Manipur |
450.26 |
0.02% |
273.60 |
121.00 |
54.53 |
61% |
27% |
12% |
|
Mizoram |
366.47 |
0.01% |
79.78 |
266.56 |
20.12 |
22% |
73% |
5% |
|
Andaman and Nicobar Islands |
312.64 |
0.01% |
111.27 |
79.15 |
122.19 |
36% |
25% |
39% |
|
Dadra and Nagar Haveli |
300.38 |
0.01% |
216.80 |
50.17 |
33.19 |
72% |
17% |
11% |
|
Daman and Diu |
296.68 |
0.01% |
179.50 |
60.41 |
56.63 |
61% |
20% |
19% |
|
Lakshadweep |
8.54 |
0.0003% |
4.01 |
2.30 |
2.24 |
47% |
27% |
26% |
|
Total |
25,81,397.09 |
100% |
9,14,260.45 |
13,39,912.16 |
1,77,920.81 |
35% |
52% |
7% |
