Ahmedabad places Chennai in mutual fund investments | Ahmedabad News

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AHMEDABAD: Supported by new inflows in equity mutual funds, Ahmedabad has overtaken Chennai in mutual fund investments and now ranks sixth among Indian cities with mutual fund asset base the highest.
The total assets under management (AUM) of mutual funds in Ahmedabad increased by 41% per annum to reach Rs 1.12 lakh crore in June 2021. The MF asset base of Chennai, meanwhile, rose 8.7% to Rs 92,252 crore, shows data compiled by the Association of Mutual Funds of India (AMFI), which had placed Chennai in sixth position in June of last year .

“With planned capital spending for businesses stopping amid growing economic uncertainty due to the pandemic, people have been looking for ways to park their money that would earn them income,” said Mumukshu Desai, director of a financial consultancy firm based in Ahmedabad.
“While the stock market was generating good returns, many investors invested their money in mutual funds. The growth of Ahmedabad’s mutual fund asset base is very visible as investors here have increasingly turned to equity-linked mutual funds over the past year or so. This is true for both individuals and individuals with high net worth (HNI), ”he said, adding that institutional investors have also invested the excess money in debt funds.
The steady rise in stock market indices since June of last year has pushed up the net asset value of mutual funds again. Financial consultants say inputs into systematic investment plans (SIPs) have also continued over the past 12 months, fueling growth in assets under management.
“SIPs were temporarily suspended by those who suffered a shortfall or pay cuts after the lockdown. These people, however, resumed their investments later when their income was restored. In the following months, entries improved and net entries in SIPs peaked in life in June 2021 across the country. The trend in Gujarat was also similar, ”said Jayesh Vithalani, financial consultant based in Ahmedabad.
“In fact, several new demat accounts were also opened during this period. The attraction for FM investments was higher among young people, who are now more aware of wealth creation, ”added Vithalani.


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