Meghalaya came second after Assam in terms of investment in mutual funds among the North East states.
According to data provided by ICRA Analytics, the Average Net Assets Under Management (AAUM) of the North East states grew by nearly 145 per cent from 2020 to touch Rs 40,324 crore in March 2024, up from Rs 16,446 crore in March 2020.
Among the eight North East states, Assam was the leading contributor in mutual funds with an AAUM of Rs 29,268 crore, accounting for nearly 73 per cent of the total AAUM of Rs 40,234 crore in March 2024.
The AAUM of Assam grew by nearly 159 per cent in the last five years, up from Rs 11,298 crore in March 2020.
It was followed by Meghalaya which accounted for 9 per cent of the total AAUM at Rs 3,623 crore in March 2024, clocking a 111 per cent growth over Rs 1,714 crore in March 2020.
Other North East states include Tripura which accounted for 5 per cent at Rs 2,174 crore (Rs 1,155 crore in March 2020); Nagaland 4 per cent at Rs 1,668 crore (Rs 965 crore in March 2020); Arunachal Pradesh 3.8 per cent at Rs 1,532 crore (Rs 525 crore in March 2020); Manipur 2.9 per cent at Rs 1,152 crore (Rs 403 crore in March 2020), while Mizoram accounted for 2.25 per cent at Rs 907 crore (Rs 386 crore in March 2020).
“The share of the north-eastern states increased to 0.73 per cent of the total AAUM of the mutual fund industry, which stood at Rs 55.01 lakh crore in March 2024, up from around 0.67 per cent in March 2020, when the industry’s AAUM stood at Rs 24.71 lakh crore,” ICRA Analytics said.
It also said that there has been a steady increase in awareness about the various investment options among the people, primarily from smaller towns and cities.
According to ICRA Analytics, growing financial literacy and the surge in interest among retail investors for investing in equities through the mutual fund route, contributed to the good growth in AAUM in towns and cities.
