In a significant shift in India's financial landscape, Gujarat has secured the second position nationwide for assets under management (AUM) in equity-oriented mutual funds. This remarkable ascent is primarily driven by the widespread adoption of systematic investment plans (SIPs), with growth surging from regions beyond the state's major metropolitan hubs.
The Numbers Behind the Rise
According to the latest data for November 2025 released by the Association of Mutual Funds in India (AMFI), Gujarat's equity mutual fund AUM reached an impressive Rs 3.66 lakh crore. This figure places it just ahead of Karnataka, which recorded an AUM of Rs 3.64 lakh crore. The top spot continues to be held by Maharashtra with a dominant equity AUM of Rs 12.9 lakh crore.
This rise is particularly notable because Gujarat ranks fourth in terms of overall mutual fund AUM, which stands at Rs 5.58 lakh crore, trailing Maharashtra, New Delhi, and Karnataka. Market experts clarify that this gap highlights a deliberate move by investors towards equity schemes, rather than a broad-based increase across all fund categories.
A Clear Shift Towards Growth-Oriented Assets
"Nearly 59% of Gujarat's total mutual fund AUM is now parked in equity schemes. This indicates a clear preference for growth-oriented assets over debt instruments," explained Jayesh Vithalani, a financial consultant based in Ahmedabad.
Vithalani emphasized that mutual fund participation has dramatically expanded beyond metropolitan cities. Distributors are reporting robust inflows from semi-urban and rural areas, as well as from newly urbanized migrants and younger investors. "These investors often become financial influencers within their own families," he noted.
The consultant linked this trend to several key factors:
- Gujarat's substantial base of self-employed professionals and business owners who are already comfortable with market-linked products.
- The proliferation of fintech platforms that facilitate small-ticket SIPs, making investing more accessible.
- A cultural shift from a trading-oriented mindset to a disciplined, long-term SIP culture.
Contrasting Portfolios and Investor Confidence
Unlike states such as New Delhi, where debt and liquid funds maintain a larger share of investment portfolios, Gujarat's investor base demonstrates a pronounced bias towards equity. Analysts interpret this as a sign of relatively higher risk appetite and longer investment horizons, buoyed by improving market sentiment and rising net asset values.
"After the market lows observed in October, November showed early signs of recovery in Indian equities," said Mumukshu Desai, another financial consultant from Ahmedabad. He pointed to several factors bolstering medium- to long-term investor confidence:
- Expectations surrounding GST rationalization.
- A more constructive outlook on a potential US-India bilateral trade agreement.
- Improving earnings prospects in financial, consumption, and cyclical sectors.
Desai added that equity mutual fund inflows from Gujarat remained strong in November across both retail and high-net-worth individuals. SIP registrations accelerated on a month-on-month basis. Furthermore, hybrid and multi-asset allocation funds are gaining popularity among investors seeking returns better than traditional fixed-income options but with relatively lower volatility.
The data underscores a transformative phase for Gujarat's investing community, marked by deeper penetration of mutual funds and a strategic pivot towards equity for wealth creation.
