Half of India’s mutual fund investments come from 5 cities: report

New Delhi [India], March 5 (ANI): Half of India’s mutual fund investment comes from the top five cities of India, says a report by asset management firm Abakkus.

According to the report, Mumbai, Delhi, Bengaluru, Pune, and Kolkata are the top five cities that contribute about fifty per cent of mutual fund investments in India.

The data released by the report adds that with about 27.29 per cent of total Assets Under Management (AUM), Mumbai comes in first place. The city’s total AUM stands at ₹18.92 lakh crores.

National Capital Delhi stands second with 12.25 per cent of total AUM at ₹8.5 lakh crore. Bengaluru stands third with a total AUM of 3.8 lakh crore or 5.48 per cent of the total investment in mutual funds.

Pune’s share stands at 2.7 lakh crore, or 3.9 per cent, and Kolkata is at the fifth rank on the list with ₹2.4 lakh crore of investment in mutual funds, or 3.48 per cent of the total AUM, according to the report.

The Indian mutual fund industry achieved new heights in 2024 as it surpassed ₹68 lakh crore in assets under management (AUM).

According to the AMFI data, the mutual fund industry’s AUM crossed ₹68 lakh crore in 2024 by November 2024. In December 2023, the AUM was ₹50.78 lakh crore, which means the AUM has grown by 34 per cent in this period.

The maximum growth came in the equity mutual funds–the equity mutual fund AUM stood at ₹30.5 lakh crore–45 per cent of the total AUM.

A decade ago, the Indian equity mutual fund AUM was a mere ₹1.9 lakh crore. In August 2023, the AUM crossed ₹30 lakh crore for the first time. This suggests that the AUM has more than doubled in less than 18 months.

The Systematic Investment Plan (SIP) has achieved remarkable milestones in 2024. The SIP AUM reached an all-time high of ₹13.54 lakh crore in November 2024.

The SIP accounts also hit a record high, at 10.23 crore in November 2024, up from 10.12 crore in September 2024.

Monthly SIP inflows witnessed an impressive 48 per cent growth year-over-year, surging from ₹17,073 crore in November 2023 to ₹25,320 crore in November 2024.

SIPs have become a cornerstone of wealth creation for Indian retail investors. But with markets going down, equity mutual funds have lost up to 20 per cent over the last nine months.

However, on average, historically, MFs have given a 12-14 per cent return over a period of 5-10 years. (ANI)