Abhishek Sinha
The Indian mutual fund industry continues to see rapid growth, with total assets under management (AUM) reaching ₹65.74 lakh crore as of March 2025 (Source: AMFI). Interestingly, the distribution of this massive pool of money is highly concentrated in a few urban centers.
According to data shared by Dixit Aggarwal (X handle), the top five cities alone contribute more than half (52.52%) of the total mutual fund assets.
Top 5 Cities by Mutual Fund Contribution
- Mumbai – 27%
India’s financial hub leads the chart by a wide margin, accounting for over a quarter of all mutual fund assets. - New Delhi – 12.63%
The national capital secures the second spot with a significant share of mutual fund AUM. - Bengaluru – 5.39%
The tech capital of India shows strong investor participation, reflecting rising wealth creation in IT and startups. - Pune – 4%
Pune’s fast-growing middle-class and IT workforce contribute meaningfully to mutual fund inflows. - Kolkata – 3.49%
Eastern India’s top city rounds off the top five, adding a steady share to the mutual fund pie.
Contribution Beyond the Top 5
- Next 10 cities: 12.61%
- Next 20 cities: 5.48%
- Next 75 cities: 6.53%
- Beyond 85 cities: 18.31%
- NRIs & Overseas investors: 4.05%
Key Insights
- Urban Dominance: More than half of the mutual fund industry’s assets are concentrated in just five cities, underlining the dominance of metros in financial savings.
- Broadening Base: Contributions from smaller cities (beyond the top 85) form a sizable 18.31%, showing growing awareness and penetration in Tier-2 and Tier-3 regions.
- Global Participation: NRIs and overseas investors add a noteworthy 4.05%, highlighting India’s attractiveness as an investment destination.
The data suggests that while metros like Mumbai and Delhi remain the powerhouses of India’s mutual fund ecosystem, the next wave of growth will likely come from smaller towns and global investors.
