Gujarat and Karnataka pipped Delhi to be positioned at the second and third slot respectively, in holding highest equity mutual fund asset in the September quarter.
The equity asset of Gujarat and Karnataka jumped to ₹2.21 lakh crore and ₹1.99 lakh crore, while that of Delhi dropped to ₹ 1.94 lakh crore.
‘Maha’ gains
Maharashtra accounted for the lion’s share of ₹7.47 lakh crore of the overall industry equity asset of ₹25.85 lakh crore, according to the study conducted by Geojit Insight, based on Association of Mutual Funds in India (AMFI) data.
Gujarat and Karnataka accounted for 8.5 per cent and 7.7 per cent of the overall equity asset of the industry while that of Delhi was down at 7.5 per cent.
Similarly, Uttar Pradesh had toppled West Bengal and Tamil Nadu to occupy the fifth position. Uttar Pradesh had equity asset of ₹ 1.66 lakh crore while that of West Bengal and Tamil Nadu was ₹1.65 lakh crore and ₹1.23 lakh crore.
Experts’ speak
Parth Parekh, Head Investor Relations, Prudent Corporate Advisory Services, one of largest MF distributors said the ability of equity instruments to give inflation beating returns is well understood by people living in the States of Gujarat and Maharashtra.
Investors are realising that the best way to invest in equity instruments from a longer term perspective is through mutual funds, he said.
The well diversified multi-cap mutual fund categories have delivered a 15 per cent compounded annual growth rate over a period of seven years. A 15 per cent CAGR implies you double your money in five years which is most likely possible in only equity oriented assets, he added.
SIP inflows
Gujarat accounted for 7 per cent of SIP inflows at around ₹1200 crore.
With an equity asset of ₹45,149 crore, Punjab regained 12th position by beating Telangana and Kerala which registered asset of ₹44,879 crore and ₹44,076 crore.
On the debt side, Delhi has retained its number two position with asset of ₹2.02 lakh crore while it was ₹1.06 lakh crore and ₹1.22 lakh crore for Gujarat and Karnataka.
“There are just 4 crore unique mutual fund investors in the country and this number is set to grow by leaps and bounds in this phase of Amrit Kaal wherein per capita income is set to grow 10 times in next 25 years. Over the years, it is well established that mutual funds as an asset class have delivered inflation beating returns and this product will eat into the share of bank deposits slowly but surely,” said Parekh.