41% of India's mutual fund investments came from Maharashtra in March: ICRA

Maharashtra has maintained its position as the top contributor to the Average Assets Under Management (AAUM) of the mutual fund industry in India, according to the latest report from ICRA. Maharashtra's AAUM contribution increased from ₹22.41 lakh crore in February 2024 to ₹22.52 lakh crore in March 2024. Out of the 37 states and union territories, five experienced a sequential decrease in their contributions to mutual fund AAUM in March 2024.

ICRA's report reveals that Maharashtra's contribution to AAUM remained the highest in March 2024 at 40.93%. The other significant contributors include New Delhi at 8.41%, Karnataka at 6.92%, Gujarat at 6.89%, and West Bengal at 5.20%. These top five states accounted for approximately 68% of the total contributions.

Among the states, several experienced a decline in their contributions to AAUM. Notably, Lakshadweep showed the most significant decrease at 57.90%, followed by Sikkim at 3.22% and Kerala at 0.59%. In contrast, certain states demonstrated growth in their contributions. Daman and Diu exhibited the highest growth at 3.60%, followed by Manipur at 3.09%, and Dadra and Nagar Haveli at 2.62%.

Among the states that saw a sequential decline in their contributions were Andhra Pradesh, Goa, Kerala, Lakshadweep, and Sikkim. Notably, Lakshadweep experienced the highest sequential decline at 57.90%, followed by Sikkim at 3.22% and Kerala at 0.59%.

On the other hand, the top five states with sequential growth were Daman and Diu, Manipur, Dadra and Nagar Haveli, Meghalaya, and Tripura. Daman and Diu reported the highest sequential growth at 3.60%, followed by Manipur at 3.09% and Dadra and Nagar Haveli at 2.62%.

In terms of contributions to AAUM, growth and equity-oriented schemes had the largest share at 51.96% in March 2024, followed by other debt-oriented schemes at 16.27% and liquid schemes at 13.01%, as per the report.

“With a relatively lower share, other exchange traded funds were at 11.91%, balanced schemes at 5.84%, gold exchange traded fund at 0.55% and fund of fund investing overseas at 0.46%,” the report states.

A recent report from ICRA highlighted that the assets under management (AUM) of the Indian mutual fund industry experienced a 35% surge, reaching ₹53.40 lakh crore in March 2024 compared to ₹39.42 lakh crore in March 2023. This surge marks the fastest year-on-year (YoY) growth in AUM since March 2021 when the Indian mutual fund industry witnessed an AUM increase of 41.17%.

Over the past five years, the AUM of the Indian mutual fund industry has expanded by 124%, starting from March 2019.

The AUM of open-ended equity funds surged by 55%, reaching ₹23.49 lakh crore in March 2024, compared to ₹15.17 lakh crore in March 2023. Conversely, open-ended debt funds saw a more modest growth of 7%, with their AUM reaching ₹12.62 lakh crore in March 2024, up from ₹11.82 lakh crore in March 2023.

The AAUM of the Indian mutual fund industry amounted to ₹55.01 lakh crore in March 2024. Throughout the fiscal year 2024, the industry's AAUM experienced a growth of 37%.