Nearly 70% of India's mutual fund investments come from these 5 states

Top 4 states and a Union Territory — Maharashtra, Karnataka, Gujarat, West Bengal and New Delhi — witnessed an average growth of around 27-30% in AAUM (average assets under management) in January 2024 on a year-on-year basis, according to a report by ICRA Analytics.

In terms of contribution, these 4 states and Union Territory accounted for nearly 68.46% of the total AAUM of Rs 52.89 lakh crore in January 2024, marginally down from a contribution of 69.43% in January 2023, stated the report.

The average asset under management of Maharashtra stood at Rs 21.69 lakh crore in January witnessing year-on-year growth of 27% from Rs 17.13 lakh crore in January 2023.


The AAUM of 3 states surged by around 30% on a year-on-year basis. New Delhi’s AAUM stood at Rs 4.52 lakh crore in January registering a growth of 30% from Rs 3.46 lakh crore in January last year. Karnataka’s AAUM stood at Rs 3.65 lakh crore — a year-on-year growth of 30% from Rs 2.79 lakh crore in January 2023. Gujarat witnessed an uptick of 30% in AAUM in January 2024 to Rs 3.60 lakh crore from Rs 2.78 lakh crore in January 2023.


The average asset under management of West Bengal surged by 28% from Rs 2.14 lakh crore in January 2023 to Rs 2.74 lakh crore in January 2024.

Interestingly, the smaller states and Union Territories beyond the top 10 states have been witnessing a steady surge in investments into mutual funds, data compiled by ICRA Analytics showed.

Haryana witnessed the lowest increase in average assets under management on a year-on-year basis. The state witnessed an uptick of 5% from Rs 1.63 lakh crore in January 2023 to Rs 1.71 lakh crore in January 2024. Lakshadweep witnessed the highest increase in AAUM on a year-on-year basis. The AAUM increased by around 998% from Rs 15.41 crore in January 2023 to Rs 169.27 crore in January 2024.

Pondicherry registered 31% growth in AAUM at Rs 3,193 crore in January 2024. Tripura witnessed 38% growth at Rs 2,053 crore while Sikkim witnessed 30% growth at Rs 1,780 crore.

Manipur witnessed a whopping 414% surge in AAUM in January 2024 at Rs 3726 crore.

According to Ashwini Kumar, Head Market Data of ICRA Analytics, mutual fund penetration has been steadily improving in smaller towns and cities backed by increasing awareness among people, the growing interest among retail investors for investing in equities through the MF route and the opening up of branches of AMCs (asset management companies) beyond the top 30 towns. The burgeoning middle class and rising financial literacy are prompting more and more people to resort to financial planning to accrue savings, particularly through the SIP (Systematic Investment Plan) route.

“The country’s strong macroeconomic fundamentals and resilient earnings growth have been aiding positive market sentiments and encouraging more retail investors to invest in equities, primarily through the SIP route. The participation of retail investors from smaller towns and cities has been steadily increasing, backed by rising awareness, financial literacy and access to products and services due to an increasing reach and penetration of AMCs. This, in turn, has led to a steady increase in the AAUM from states and Union Territories beyond top 10,” said Kumar. said.

In terms of existing penetration, the per capita penetration in Maharashtra is highest at Rs 1,69,300, with its AAUM accounting for nearly 77% of the GDP. The per capita penetration in Haryana is the second-highest. The per capita penetration in Haryana is Rs 56,420 with its AAUM accounting for 18% of the GDP.

Manipur has the lowest per capita penetration. In Manipur, the per capita penetration is at Rs 3,270 accounting for 3% of GDP. The number of fund house branches in Maharashtra is 246 while that in Manipur stands at 1.