Mutual funds: Small towns join big players, says ICRA report
₹52.89-lakh crore of top five States and Union Territories (UTs) including Maharashtra, New Delhi, Karnataka, Gujarat and West Bengal accounted for 68 per cent of the mutual fund industry last month, reported Business Line. However, the top-5 States’ share fell marginally from 69 per cent as new entrants in the mutual fund space are making inroads in smaller cities, shows ICRA Analytics data.
In fact, the smaller States and UTs beyond the top 10 also saw a steady surge in investments into mutual funds. The MFs’ asset in Maharashtra was higher by 27 per cent last month at ₹21.69-lakh crore against ₹17.14-lakh crore logged in January 2023.
The State accounted for 41 per cent of overall average AUM of the industry at ₹52.89-lakh crore last month. The assets of New Delhi, Karnataka and Gujarat at ₹4.52-lakh crore, ₹3.65-lakh crore and ₹3.61-lakh crore grew 30 per cent each year-on year, while that of West Bengal at ₹2.74-lakh crore was up 28 per cent.
It is interesting to note that the top 10 States accounted for nearly 87 per cent of the total average AUM of mutual funds with the remaining States and UTs accounting for around 13 per cent. Among the Top 10, Tamil Nadu saw a growth of 34 per cent at ₹2.41-lakh crore; Uttar Pradesh and Rajasthan were higher by 37 per cent and 38 per cent at ₹2.42-lakh crore and ₹96,619 crore, respectively, while the share of Madhya Pradesh increased by 39 per cent to ₹81,388 crore.
The growth beyond the top 10 States has also been impressive with Puducherry and Tripura recording 31 per cent and 38 per cent growth at ₹3,193 crore and ₹2,053 crore, respectively, while Manipur witnessed a 4x surge to ₹3,726 crore and that of Lakshadweep was up 10 times to ₹169 crore. Sanjay Pawar, Managing
. Read more on livemint.com
