Mutual fund penetration poor in most states; way below global average

Many have mutual fund assets which are less than 2% of economic output

The Rs 26-trillion mutual fund industry may have to wait a little longer to become mainstream in many Indian states.

An analysis of latest state-wise data from the Association of Mutual Funds in India (Amfi) and official statistics on state economies shows that many Indian states have limited exposure to mutual fund assets relative to their economic output.

The analysis showed that assets under management for most states is in single digits as a percentage of economic output in India. This is far lower than the global average, where mutual fund assets can be the equivalent of over a third