West Bengal is an important player in mutual fund sector: LIC Mutual Fund

West Bengal is showing significant growth in mutual fund (MF) investments, R K Jha, MD & CEO, LIC Mutual Fund Asset Management (LICMF) said on Wednesday. Major factors driving the popularity of mutual funds include the flourishing capital markets and the widespread adoption of SIPs as a favored investment medium for the expanding middle class, particularly among young individuals. 

Mutual funds are gaining traction among the youth primarily due to their transparency, professional management, and effective regulation. A growing number of investors are recognizing the opportunities presented by mutual funds and integrating them into their fundamental investment portfolios.

As per AMFI data, West Bengal has a significant share in Industry Asset under Management and features fifth in terms of the assets under management (AUM) composition, contributing 5.1% to the total industry AuM. Further, the state ranks 9th in terms of AUM per capita of Rs 32,041.

In April 2024, Maharashtra emerged as the leading contributor to the total Average Assets Under Management (AAUM), holding a substantial share of 40.91%. Following Maharashtra, New Delhi made a notable contribution of 8.35%, while Karnataka and Gujarat followed closely with contributions of 7% and 6.84% respectively. West Bengal also made a significant contribution of 5.11%. Collectively, these top five states collectively represented approximately 68% of the total AAUM contribution.

"The investment climate in West Bengal has been showing notable progress, contributing to positive trends in job growth. The state has been attracting substantial investments across various sectors including IT, healthcare, textiles, agriculture, and chemicals. Recent business summits have highlighted significant investment proposals, reflecting growing interest and potential in the region," Jha said.

He further added the state has also demonstrated improvements in areas such as ease of doing business, skill development, and support for micro, small, and medium enterprises (MSMEs). This positive shift is expected to encourage more individuals to explore investment opportunities, potentially increasing the number of new mutual fund investors in the near future.