Investors from smaller cities in India are embracing mutual funds like never before and the share of such investors in cities beyond the top 15 have risen significantly in the last four years, a new report showed on Saturday.
While Mumbai and Delhi continue to bring the most investors, accounting for 39 percent as of June 2024, other cities have steadily contributed over 30 percent since March 2021, according to a Franklin Templeton report.
Mumbai and Delhi also contributed over 40 percent of investors until December 2023, but the report mentioned that their contribution slipped to 39 percent in March this year.
Also, the assets under management (AUM) of investors in below 30 cities outpaced the top growth in the AUM of the top 30 cities in the country.
The top 30 cities saw AUM growth from ₹20 lakh crore in December 2018 to ₹54 lakh crore in August 2024 – a CAGR of 19 per cent. On the other hand, the below 30 cities saw a CAGR of 24 per cent, from ₹4 lakh crore AUM in December 2018 to ₹12 lakh crore by August 2024.
Telangana has the highest average AUM growth and accounts for 63.89 percent of investors in India. It is followed by Rajasthan, which has 51.19 percent growth.
Uttar Pradesh, Haryana, and Gujarat also make it to the list with more than 40 per cent growth. New Delhi and Maharashtra saw the least growth over the year with a little over 30 per cent growth in average AUM. As per latest data from the Association of Mutual Funds of India (AMFI), the net AUM of the Indian mutual fund industry surged to cross ₹65 lakh crore mark in August.
Equity funds saw ₹38,239 crore inflows in August, a 3.03 per cent growth from ₹37,113 crore witnessed in July. Equity inflows have shown remarkable strength, with the last four months consistently exceeding ₹34,000 crore.
The systematic investment plans (SIPs) reached fresh highs as monthly contributions via SIPs hit ₹23,547 crore in August, against ₹23,332 crore in the previous month.
–IANS
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