The share of assets under management in equity mutual funds (excluding arbitrage funds) from the eastern states of India has the potential to rise to 20 per cent over the next five years from the current 13 per cent.
“Over the past 10 years, the share of the East has grown from around 7 per cent to 13 per cent. This has the potential to be 20 per cent in the next five years. We are seeing significant growth in net inflows coming from eastern cities such as Calcutta, Guwahati, Patna, Bhubaneswar and Raipur,” said Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal Asset Management.
Data compiled by Motilal Oswal AMC shows net inflows into equity funds in Calcutta in FY25 grew 141 per cent to ₹18,528 crore. The growth rate of gross inflows in Guwahati, Patna, Bhubaneswar and Raipur in FY25 was 87 per cent, 123 per cent, 110 per cent and 87 per cent, respectively, in FY25.
In absolute numbers, the East’s assets under management have increased from ₹248,170 crore in FY24 to ₹464,755 crore in the ongoing fiscal (till May). The number of new SIPs registered in the East has increased from 35 lakh in FY24 to 51 lakh in FY25.
The factors fueling the growth of mutual fund assets from the region include its relative underpenetration compared with cities in the West and North, along with rising awareness and participation from tier 2 and tier 3 locations. High net worth individuals and family offices from the region are also increasing their investments, Chaturvedi said.
The asset management company plans to add six more branches in the East over its current 12 in a bid to expand in the region. Nationally, it has expanded from 30 locations to 63 locations in around two and a half years and plans to further expand to 85 locations in one year.
Motilal Oswal AMC has grown its assets under management to ₹1.5 lakh crore from around ₹40,000 crore in a period of around two and a half years. It caters to over 65 lakh unique investors and has more than 46,000 empanelled distributors.
Cause for concern
Chaturvedi said that for the first time in three years, the number of SIPs discontinued has been more than the number of new SIPs registered.
Global factors such as wars and geopolitical turmoil have resulted in market volatility. But instead of continuing with their SIPs, as the units allotted could increase if the market falls, investors have moved out of existing SIPs.
“That is a matter of concern,” he said.