Maharashtra, New Delhi, Karnataka, Gujarat and West Bengal together contributed around 69 per cent of the mutual fund industry's AUM as of January 2024, according to a report by Icra Analytics.
These five states/UT saw growth of 27-30 per cent year-on-year in assets under management last month.
The report said that as of January 2024, these states contributed 68.5 per cent to the industry's total asset under management (AUM) of Rs 52.89 lakh crore, marginally down from contribution of 69.43 per cent in January 2023.
Leading the fray is Maharashtra with an AUM of Rs 21.69 lakh crore, Delhi at Rs 4.52 lakh crore, Karnataka at Rs 3.65 lakh crore, Gujarat Rs 3.61 lakh crore and West Bengal at Rs 2.74 lakh crore.
Tamil Nadu saw an AUM of Rs 2.41 lakh crore, Uttar Pradesh Rs 2.42 lakh crore, Rajasthan Rs 96,619 crore, Madhya Pradesh Rs 81,388 crore and Telangana Rs 78,964 crore.
These top 10 states account for 87 per cent of the industry's AUM as of last month, the report said.
The report noted that the states beyond the top 10 have been growing steadily in investing into mutual funds.
While Puducherry contributed Rs 3,193 crore to the total AUM, Tripura's share was Rs 2,053 crore, Sikkim (Rs 1,780 crore), Manipur (Rs 3,726 crore) and Lakshadweep (Rs 169 crore).
According to Ashwini Kumar, head of markets data, at Icra Analytics, mutual fund penetration has been steadily improving in smaller towns and cities on the back of increasing awareness, growing interest among retail investors to invest in equities through the mutual fund route, opening of more AMC branches beyond the top 30 towns and the massive monthly inflows into SIPs.
Per capita penetration in Maharashtra is the highest at Rs 1,69,300 with its AUM, while the lowest is in Manipur at Rs 3,270. Maharashtra has 246 AMC branches, Manipur has just one.