Top 5 States of India Invests 65% into MFs AUM: ICRA Analytics

A recent report by ICRA Analytics shows that Maharashtra is still the leader when it comes to Mutual Funds investment. The state contributed 40.61% to the total Average Assets Under Management (AAUM) in June 2025. In fact, just five states—Maharashtra, New Delhi, Gujarat, Karnataka and West Bengal—accounted for more than 65% of the total AUM in the country.

Nagaland’s Amazing Growth

While bigger states dominated the overall numbers, smaller regions also showed impressive growth. Nagaland, for example, saw the biggest yearly increase in AAUM at 100.57%, which is a huge jump. Other smaller regions like Lakshadweep and Ladakh also did well, with their AUM growing by 19.18% and 18.17%, respectively. This shows that even less-populated areas are becoming more involved in mutual fund investments.

Equity Funds Take the Lead

Growth in AAUM was mostly driven by equity-oriented mutual funds. States like Ladakh and Lakshadweep had a large chunk of their investments in equity funds, with Ladakh seeing 90.85% of its AAUM in equity-based schemes. Lakshadweep was not far behind with 84.07%. Across the country, equity schemes made up 54.76% of the total AAUM, showing that more and more people are turning to stocks for investment.

State-wise Breakdown of AAUM

Maharashtra was by far the biggest contributor, but other states like New Delhi, Gujarat, Karnataka and West Bengal also made important contributions. Together, these five states helped push the overall mutual fund industry forward.

Nagaland saw the biggest monthly growth in AAUM at 62.47%, while Dadra and Nagar Haveli grew 56.52% over the past year. On the other hand, Daman and Diu’s AAUM grew 13.50% year-over-year, which is still solid but slower compared to other areas.

Also Read: Hybrid Funds Inflow Jump 163% YoY to ₹23,223 Crore, say ICRA

ETFs and Gold ETFs Making Waves

Exchange-Traded Funds (ETFs) also played a big role in the AAUM growth. They contributed 11.28% to the total AAUM in June 2025. Gold ETFs made up 0.87%, showing that people are becoming more interested in investing in gold and other alternative funds.

Mutual Fund Industry Grows Strong

The mutual fund industry overall has been growing steadily. The total AAUM increased by 21.94% compared to last year rising by 3.61% from last month. This suggests that more people are investing in mutual funds and that growth-oriented funds, including ETFs, are becoming more popular.

In conclusion, mutual funds are gaining popularity across India, from major states like Maharashtra to smaller regions like Nagaland. With equity funds leading the way, the future looks bright for investors looking for good returns.