Equity funds grab 55% of India's MF assets, Nagaland tops monthly growth

Top Five states by AUM contributed 67.65% to the AAUM of domestic mutual fund industry in June 2025: ICRA Analytics

The Indian mutual fund industry continues its expansion, with Average Assets Under Management (AAUM) rising 21.94% year-on-year and 3.61% month-on-month as of June 2025, according to the latest industry data analysed by Icra Analytics.

Where the Growth Is: Equity Takes the Crown

Growth-oriented equity schemes remain the backbone of mutual fund assets, contributing a whopping 54.76% of the total AAUM. This category continues to attract investors looking for long-term wealth creation despite ongoing market volatility.

• Debt-oriented schemes contributed 14.88%
• Liquid schemes accounted for 12.50%
• Geography of Money: Maharashtra Leads, Small States Outpace

Contribution of growth oriented equity-oriented schemes remained the maximum at 54.76% followed by debt-oriented schemes and liquid schemes which contributed 14.88% and 12.50% respectively

While Maharashtra contributed the lion’s share (40.61%) of mutual fund assets—thanks to its deep-rooted financial ecosystem—the real headline-grabbers were India’s smaller and emerging regions, where AAUM growth rates far outpaced national averages.

 

Top Annual Gainers in AAUM:

Nagaland: 100.57% YoY growth

Dadra & Nagar Haveli: 56.52% YoY growth

Ladakh: 18.17% MoM, strong YoY traction

Lakshadweep: 19.18% MoM growth (but -26.98% YoY)

Despite their relatively small base, these regions reflect a wave of new investor participation, particularly in equity-oriented schemes, which made up:

90.85% of assets in Ladakh

84.07% in Lakshadweep

Amongst the states, Maharashtra lead with a maximum contribution of 40.61% followed by New Delhi, Gujarat, Karnataka and West Bengal whose respective contributions remained below 10%

This shows that retail investors in remote areas are embracing market-linked investing over traditional savings like FDs or real estate—likely influenced by smartphone penetration, social media awareness, and simplified onboarding processes through fintechs.

On a yearly basis, Nagaland witnessed the maximum growth in AAUM which stood at 100.57% followed by Dadra and Nagar Haveli which grew 56.52%. Barring Lakshwadeep, all states witnessed growth in AAUM on a yearly basis in June 2025, the minimum being that of Daman and Diu whose AAUM grew 13.50% YoY in June 2025. The AAUM contribution from Lakshwadeep fell 26.98% on YoY basis in June 2025.

With more than 65% of total AAUM coming from just five states (Maharashtra, Delhi, Gujarat, Karnataka, and West Bengal), the mutual fund industry still has vast headroom for growth across India's Tier-2, Tier-3, and rural regions.