Maharashtra contributes 38% or Rs. 1.05 lakh crore of the total Rs. 2.79 lakh crore equity assets managed by the industry, followed by Delhi and Karnataka.
An analysis of state-wise share in equity assets showed that Maharashtra contributed the highest 38% or Rs. 1.05 lakh crore to the Rs. 2.79 lakh crore equity assets managed by the industry as on September 2014.
This was followed by Karnataka (Rs. 20,701 crore), Gujarat (Rs. 20,148 crore) and New Delhi (7% or Rs. 18,336 crore).
The top ten states contributed 85% to the total equity assets under management.
Distributors
say that if the bull market sustains, other states will also contribute
meaningfully in future. “The equity cult is entrenched in Mumbai. In fact
equity sales picked up two months before elections. If equity sales go up in
Mumbai, other states will also catch up,” says Vinod Jain of Jain Investment.
Highest equity AUM contributing states
|
State |
Equity |
% to Total |
|
Maharashtra |
105,388 |
38% |
|
Karnataka |
20,701 |
7% |
|
Gujarat |
20,149 |
7% |
|
New Delhi |
18,337 |
7% |
|
West Bengal |
16,531 |
6% |
|
Tamil Nadu |
13,597 |
5% |
|
Uttar Pradesh |
11,976 |
4% |
|
Haryana |
6,374 |
2% |
|
Rajasthan |
5,043 |
2% |
|
Others |
21,540 |
8% |
|
Total |
239,635 |
86% |
|
Total equity assets |
279,423 |
|
|
Source : AMFI (Rs. cr) |
||
Of the Rs. 10.68 lakh crore managed by the industry as on September 2014, almost half (Rs. 4.99 lakh crore) the assets are concentrated in Maharashtra. India’s financial capital Mumbai contributed 42% to the total AUM of the industry. This was largely due to contribution from liquid and debt funds as most banks and corporate offices are situated in Mumbai.
About 61% of the industry’s total liquid fund assets came from Maharashtra. Similarly, 42% of the overall debt fund assets were sourced from Maharashtra.
This was followed by Delhi which contributed 9% or Rs. 95,176 crore to the industry’s total assets. Delhi was followed closely by Karnataka (7%) and Gujarat (6%).
The top ten states contribute 92% to the industry’s total Rs. 10.68 lakh crore AUM.
Total assets contributed by the top ten states
|
State |
Total |
% to Total |
|
Maharashtra |
499,106 |
47% |
|
New Delhi |
95,177 |
9% |
|
Karnataka |
71,427 |
7% |
|
Gujarat |
59,576 |
6% |
|
Others |
58,673 |
5% |
|
West Bengal |
54,297 |
5% |
|
Tamil Nadu |
47,199 |
4% |
|
Haryana |
43,767 |
4% |
|
Uttar Pradesh |
27,847 |
3% |
|
Rajasthan |
26,483 |
2% |
|
Total |
983,550 |
92% |
|
Total Industry AUM |
1,068,904 |
|
|
Source : AMFI (Rs. cr) |
||
Going beyond T-15
Fund houses are taking a number of measures such as investing in
investor awareness, enrolling new cadre of distributors, tying up with banks to
expand their footprint. SEBI’s incentive to AMCs to charge a higher TER also
seems to be yielding the desired results.
P Jaideep, President Head – Retail Sales & Marketing, Union KBC Mutual Fund head earlier told Cafemutual that bank sponsored AMCs are likely to lead in terms of B-15 penetration. “Public sector banks have a good presence in small cities. Also, banks enjoy trust and these banks act as key financial advisors for people living in small cities and town.”
AMFI data shows that the industry’s AUM from B-15 cities has gone up from 12 % in September 2011 to 14% in September 2014.