Gujarat’s investment landscape is transforming rapidly and Ahmedabad is emerging as one of its strongest engines of growth.
Despite a year marked by volatile markets, the city posted the second-highest rise in equity assets under management (AUM) among India’s ten largest mutual fund hubs.
Data from the Association of Mutual Funds in India (AMFI) shows Ahmedabad’s equity AUM climbing 16.6% to Rs. 2.26 lakh crore.
Mumbai remains far ahead in absolute numbers, with AUM expanding 17.3% to Rs. 21.18 lakh crore, but the pace at which Ahmedabad is closing the behavioural gap in investor participation is noteworthy. The city now holds the sixth spot nationally and is outpacing several larger metros in terms of growth momentum.
Analysts credit this surge to a deepening SIP culture, a growing preference for equities—through direct investments as well as mutual funds—higher disposable incomes, and a shift toward long-term wealth-building strategies.
Mumukshu Desai, director at a financial consultancy firm, has been quoted by a national daily saying that the “TINA” (There Is No Alternative) effect is boosting mutual fund inflows. “Real estate has become less accessible, FD rates have dropped sharply, and India has outperformed many global equity markets. Mutual funds offer transparency and lower costs. Digital platforms have simplified investing, driving SIP numbers steadily higher. Even HNIs who once leaned on fixed income products began moving to hybrid and multi-asset funds when FD rates sank to around 6%. With returns of 8–9%, lower volatility and better tax treatment, these products have become very compelling,” he said.
Gujarat’s rise, however, is not limited to its largest city. Nine urban centres from the state now feature among India’s top 100 mutual fund markets—making Gujarat one of the most geographically widespread investing regions in the country.
Vadodara has entered the national top 10 with Rs. 65,027 crore in equity AUM, registering a strong 15% jump and outpacing growth in larger metros such as Chennai and Hyderabad. Surat follows closely at Rs. 58,222 crore, maintaining its position as a standout Tier-2 market with healthy 12.7% growth, although it slipped one rank as other cities surged ahead.
The momentum continues across mid-sized centres. Rajkot posted a robust 13.2% rise to Rs. 24,952 crore—outperforming several state capitals including Cochin, Ranchi, Bhubaneswar and Visakhapatnam. Gandhinagar recorded a sharp 15.7% increase, supported by PSU employees and the expanding economic activity around GIFT City. Anand climbed to Rs. 7,561 crore, fueled by investors linked to SMEs and the dairy industry.
Smaller cities are not lagging behind. Valsad made one of the biggest leaps in the state, rising five positions with 12.3% growth. Bhavnagar and Bharuch also delivered solid double-digit expansion, reflecting the region’s industrial earnings steadily moving into long-term financial investments. “Such consistent SIP behaviour during market swings shows how far these cities have come in investment maturity,” the consultant added.
Top 10 Mutual Fund Markets (Equity AUM – September 2023 | AMFI)
- Mumbai: Rs. 21,18,000 crore
- Delhi: Rs. 9,27,000 crore
- Bengaluru: Rs. 4,06,000 crore
- Pune: Rs. 2,96,000 crore
- Kolkata: Rs. 2,49,000 crore
- Ahmedabad: Rs. 2,26,000 crore
- Chennai: Rs. 1,57,000 crore
- Hyderabad: Rs. 1,50,000 crore
- Vadodara: Rs. 65,027 crore
- Jaipur: Rs. 54,271 crore
Gujarat Cities in India’s Top 100 MF Markets (AUM in Rs. crore)
- Vadodara: 65,027
- Rajkot: 24,952
- Gandhinagar: 11,348
- Bhavnagar: 7,561
- Vapi: 6,775
- Anand: 6,019
- Valsad: 5,285
Also Read: Gujarat Sees Record Growth In Equity Mutual Funds https://www.vibesofindia.com/gujarat-sees-record-growth-in-equity-mutual-funds-last-month/
