Investment in mutual funds has been rising steadily across India, despite variations in investor behavior across states. According to data from the Association of Mutual Funds in India (AMFI), investors in relatively less-developed states such as Bihar, Uttar Pradesh, Rajasthan, and Madhya Pradesh continue to allocate up to 70% of their mutual fund investments to equity funds linked to the stock market in pursuit of higher returns.
In contrast, investors in more developed states such as Maharashtra, Delhi, Tamil Nadu, and Karnataka are giving greater preference to relatively safer debt funds.
The data also shows that Maharashtra leads the country in total mutual fund investments. It ranks first in both mutual fund investments as a share of the state’s GDP and per capita investment.
On the other hand, Bihar, Manipur, Nagaland, Tripura, and Jammu & Kashmir have the lowest per capita mutual fund investments. This suggests that investors in developed states are focusing more on reducing risk, while those in emerging states are placing greater trust in equity funds in the hope of earning higher returns.
Maharashtra leads in mutual fund investment relative to GSDP
When mutual fund investments are measured as a share of a state’s Gross State Domestic Product (GSDP), Maharashtra ranks first with 116%.
This means the total mutual fund investments in the state exceed the size of its economy. It is followed by West Bengal (43%), Karnataka (37%), Gujarat (36%), and Jharkhand (34%).
Hybrid funds: Odisha, Assam, and Goa jointly top in 2026
In October 2025, Goa had the highest allocation to hybrid funds at 19.6%, followed by Andhra Pradesh, Telangana, and West Bengal among the top investors.
By May 2026, the picture had changed, with Odisha, Assam, and Goa jointly leading the rankings, each allocating 19% of its mutual fund investments to hybrid funds. Gujarat also entered the top five for the first time.
On the other hand, Rajasthan, Delhi, and Maharashtra recorded the lowest allocation to hybrid funds in May 2026.
