Majority of states, union territories have single-digit MF penetration

Per capita investment is less than Rs 10,000 in eight of them

Mutual fund investments are equivalent to less than 10 per cent of the economy in 19 out of 31 states.

In half a dozen states, including Arunachal Pradesh, Mizoram, Nagaland, Sikkim, Jammu and Kashmir, and Tripura, it is five per cent or less. The leading states remain developed ones, including Maharashtra, where assets are equivalent to 80 per cent of the state's economy as measured by the gross domestic product (GDP), and Delhi, where it is 49 per cent. Goa, Gujarat, and West Bengal have between 20-42 per cent.

 

The investment per person in the state is lowest in Bihar, where it stands at Rs 4,160. It is highest in Delhi, where it is Rs 223,900. The other states and union territories with the most investments on a per capita basis include Goa, where it is Rs 2,00,190, and Maharashtra, with Rs 176,040. Others with less than Rs 10,000 invested per person include Madhya Pradesh, Arunachal Pradesh, Assam, Nagaland, Mizoram, Jammu and Kashmir, and Tripura. 

Bihar also has the lowest per capita net state domestic product at Rs 47,498 in 2021-22 and Rs 54,111 in 2022-23. Goa was the richest, with Rs 4,72,070.

Mutual fund investments touched the Rs 50 trillion mark for the first time in December 2023. The average assets under management were Rs 52.9 trillion in January 2024.

The rise in assets has been helped by equity market performance, noted a February 2024 Equity Research report from the financial services firm Jefferies. Debt and liquid fund flows increased as well, noted the report by equity analyst Prakhar Sharma and equity associate Vinayak Agarwal. Equity assets have risen by 48 per cent year-on-year, the report noted.

The share of equity assets has now reached 55 per cent in January.

Interestingly, Maharashtra has the lowest proportion of equity assets among all states and union territories. It accounts for 40 per cent of the total assets under management of Rs 21.7 trillion, the highest of all the places under consideration. Maharashtra forms the headquarters of a number of Indian banks and conglomerates whose debt capital can be deployed in mutual funds. Delhi has a 50 per cent split between equity and non-equity assets.

 

The lowest assets under management are in the Andaman and Nicobar Islands. It has Rs 800 crore worth of assets. Around 88 per cent of the money is invested in equity schemes. The highest share of equity assets is in Manipur. It has a 91 per cent share with over Rs 3,700 crore in assets.