Mutual Fund assets in Northeast states swell by 145% from 2020 to touch Rs 40,324 crore in March 2024: ICRA Analytics

economictimes.indiatimes.com:

AAUM) of the northeastern states has grown by nearly 145 per cent from 2020 to touch Rs 40,324 crore in March 2024, up from Rs 16,446 crore in March 2020, indicating a growing appetite among investors from smaller towns and cities to invest in mutual funds.

The share of the northeastern states increased to 0.73 per cent of the total AAUM of the mutual fund industry, which stood at Rs 55.01 lakh crore in March 2024, up from around 0.67 per cent in March 2020, when the industry’s AAUM stood at Rs 24.71 lakh crore.

Though the contribution of these states to the total AAUM of the industry is still small in percentage terms, there has been a steady and consistent growth in mutual fund inflows in these states backed by increasing awareness among people and the growing interest among retail investors for investing in equities through the mutual fund route, Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics, said.

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Assam, with an AAUM of Rs 29,268 crore, was the leading contributor among the Seven Sisters, accounting for nearly 73 per cent of the total AAUM of Rs 40,234 crore in March 2024. The AAUM of Assam grew by nearly 159 per cent in the last five years, up from Rs 11,298 crore in March 2020. Meghalaya accounted for 9 per cent of the total AAUM at Rs 3623 crore in March 2024, clocking a 111% growth over Rs 1714 crore in March 2020. Tripura accounted for 5 per cent at Rs 2174 crore (Rs 1155