GUWAHATI: Mutual fund investments in Northeast have witnessed a substantial growth, with Assam leading the region with a share of 73% in average mutual fund assets under management (AUM).
According to data compiled by ICRA Ratings, the AUM from the Northeast surged by nearly 145%, from Rs 16,446 crore in March 2020 to Rs 40,324 crore in March 2024, signalling a growing interest in passive investment avenues, particularly in small towns.
The combined AUM from the seven states of the region now accounts for 0.73% of the industry AUM, which stood at Rs 55.01 trillion in March 2024, compared to Rs 24.71 trillion in March 2020.
Assam’s AUM stands at Rs 29,268 crore, representing a remarkable growth of almost 159% over the last four years from Rs 11,298 crore in March 2020.
Meghalaya follows with a 9% share, amounting to Rs 3,623 crore in March 2024, reflecting a growth of 111% from Rs 1,714 crore in March 2020.
Tripura, Nagaland, Arunachal Pradesh, Manipur, and Mizoram also registered significant growth in their AUM figures.
Ashwini Kumar, Senior Vice President and Head Market Data at ICRA Analytics, highlighted the increasing awareness among people and the growing interest among retail investors in equities through mutual fund investments as key factors driving this growth.
While acknowledging the relatively small contribution of these states to the total AUM of the industry, Kumar highlighted the immense growth potential, given the burgeoning middle class and rising financial literacy.
He expects the trend of financial planning and mutual fund investments to continue gaining traction in the northeastern states.
Overall, the Indian mutual fund industry continues to witness growth momentum, with increased inflows across both debt and equity-oriented schemes in April 2024.
