How Indian states invest in Mutual Funds?

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New Delhi: As per the most recent AMFI data for the month of June-Maharashtra enjoys an average asset under management (AAUM) of more than Rs 15lk crore which is almost 5 times the amount than its nearest competitor, New Delhi. Other states which have made the cut in the top states investing in the mutual fund industry include Gujarat and Karnataka having their AAUM at Rs 2.6lk crore, apiece.

A surprise entrant in the list was West Bengal having Rs 1.9lk crore AAUM and having the highest exposure in equities amongst the top five biggest states in terms of AAUM. Maharashtra has one of the lowest exposures in the equity segment at 34 percent of the total AAUM.
In terms of penetration, the usual contenders like Maharasthra and New Delhi retain the top spots. The surprise of the lot remains Goa, which remains the third best state in terms of penetration for mutual funds, with almost 29 percent of the AAUM to the State’s GDP ratio. This has been closely followed by Gujarat which has more than 160 AMC branches in the state.

Other key highlights include Kashmir, Himachal Pradesh and most Northeastern states having equity exposure of more than 80% of the total AAUM levels in June. Only New Delhi, Maharasthra and Nagaland have 50% or more exposure in the non-equity MF segment.

The SIP (systematic investment plan) has remained above the Rs 12k crore mark for the second straight month. Retail investors have shown resilience amid the volatility seen in the month of June. The SIP amount remains at record levels, falling just a minor Rs 10 crore from the previous month of May. As per the AMFI data for the month of June, the SIP rose to Rs 12,276 crore.

The equity segment saw inflows for the sixteenth consecutive month. All equity fund categories saw an inflow in June. Equity flows stood at Rs 15,498 crore-the inflows however were lost seen since January 2022.

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