While Maharashtra leads the list of states with the highest contribution by investment value in direct mutual funds, Uttar Pradesh secures second position in the list, shows the India Investment report released by ET Money. The presence of a not-so-obvious state in the top states shows how investing in MFs is claiming wider acceptance among Indian investors, says the report
The report looks into aspects of how people are investing in different cities and states. The findings are based on a study of clients accounting for Rs.100 crore of SIP book from over 15,000 pincodes.
Please note that since ET Money distributes direct plan, the report only captures trends in direct plan MF investments.
Delhi, Mumbai and Bengaluru emerged as the top three cities in terms of highest investment contribution, while cities such as Patna, Jaipur and Lucknow were surprising entrants in the top 10 cities.
Further, the report shows that investors under the age of 36 are steadily increasing and their investment value is also climbing up. This busts that the millennials are not considerate of their financial lives and like to spend all their income, says the report.
Interestingly, the report finds out that the ratio of female investors on the website over the last 4 years has increased to 19% from 9%.
Meanwhile, it also finds that increasing income is not translating into increasing investments. This indicates that as people start to earn more they spend a higher proportion of money to upgrade their lifestyle and increase discretionary spending rather than investing it.
