There is a big disparity among Indian states when it comes to contribution of assets to country's Rs 13 lakh-crore mutual fund industry. With continued low penetration of the mutual fund product as an investment avenue for investors in states considered less developed, the graph is quite skewed towards a select chunk of states.
Ten Indian states contribute a lion's share of 95% or Rs 12.25 lakh crore. These include, Maharashtra, New Delhi, Karnataka, Gujarat, West Bengal, Haryana, Tamil Nadu, Uttar Pradesh, Rajasthan and Andhra Pradesh.
The asset contribution from the rest two-third of the Indian states comprise a meager 5 per cent. Interestingly, out of them, there are several which are less than Rs 1,000 crore and many which contribute less than Rs 500 crore to the mutual fund sector. Ironically, there are various schemes which are bigger in size that their contribution.
