Mutual fund assets in Northeast states increases by 145% in 4 years: ICRA Analytics

The average net assets under management (AAUM) of northeastern states have surged by 145%, from US$ 1.97 billion (Rs. 16,446 crore) in March 2020 to US$ 4.83 billion (Rs. 40,324 crore) in March 2024, indicating a growing investor appetite in smaller towns and cities for mutual funds, as per a report by ICRA Analytics. Northeastern states now account for 0.73% of the total AAUM of the mutual fund industry, amounting to US$ 658.88 billion (Rs. 55.01 lakh crore) in March 2024, up from 0.67% in March 2020 when the industry's AAUM was US$ 295.96 billion (Rs 24.71 lakh crore).

Leading the pack among the northeastern states, Assam's AAUM stood at US$ 3.51 billion (Rs. 29,268 crore) in March 2024, representing approximately 73% of the total AAUM in the region. Meghalaya, Tripura, and Nagaland followed with contributions of 9%, 5%, and 4%, respectively, showing notable growth rates. Senior Vice President and Head of Market Data at ICRA Analytics, Mr. Ashwini Kumar, attributed this growth to increasing awareness and interest among retail investors in equities through mutual funds, especially in smaller towns and cities. Despite this positive trend, He noted that the country's mutual fund penetration remains low, signalling ample room for growth, particularly with rising financial literacy and the expanding middle class.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.