As interesting as this information may sound, the mutual fund industry’s top five states have caught up with Gujarat during Prime Minister Narendra Modi’s first term.
Back in March 2014, Gujarat, Karnataka, Maharashtra, New Delhi and West Bengal were among the top five states in terms of AUM. Among these states, Gujarat had the highest allocation of 30% to equities. Karnataka, Maharashtra, New Delhi and West Bengal had 23%, 16%, 14% and 24% allocated to equity.
Between 2014 and 2019, share of equity-oriented funds in these five states increased significantly. As on June 2019, Gujarat’s asset allocation to equities rose to 42%. For Karnataka the number rose from 23% to 40%, for Maharashtra from 16% to 39%, for New Delhi from 14% to 38% and for West Bengal 24% to 41%.
|
State |
Equity share as on March 2014 |
Equity share as on June 2019 |
|
Gujarat |
30% |
42% |
|
Karnataka |
23% |
40% |
|
Maharashtra |
16% |
39% |
|
New Delhi |
14% |
38% |
|
West Bengal |
24% |
41% |
In terms of the total AUM, while these top five states still dominate the mutual fund industry with around 70% share of the industry’s AUM, their share have declined slightly from 72% as of March 2014. This is due to faster growth in other states and union territories over the past five years.
While the AUM of these top five states grew at a healthy pace of 21.5% CAGR between March 2014 and June 2019, assets of the remaining states and union territories grew at a faster rate of 24.4%.
Maharashtra remained at the top of the table even as its AUM share came down to 42% in June 2019 from 47% in March 2014. On the other hand, New Delhi, which is placed at the second spot, saw its AUM share rise from 8% to 9% during this time.
Karnataka, Gujarat and West Bengal followed the list of being the top state in terms of total AUM. While Karnataka’s AUM share remained flat at 7%, for Gujarat and West Bengal the number remained unchanged at 5% each over the past five years
