Penetration of Mutual Fund Products

What type of mutual funds do urban Indians invest in? What is the difference across
various cities? How many actually invest in mutual funds? Here are some answers.
52% do not invest in any mutual funds at all. Mumbai has the highest penetration of
MF with as much as 58% respondents having invested. Chennai has the least
penetration – less than the other smaller towns.

Equity fund Debt fund(Liquid/MIP/GILT) Balanced fund

60%
Tax saving fund Exchange traded funds No investment in MF
55%
50%
45%
40%
35%
30%
25%
20%

15%
10%

5%
0%
Delhi(NCR)

Mumbai

Chennai
Kolkata

Others
All India

Bangalore

The two most popular categories are Equity funds and tax saving funds. These
categories show penetration varying between 30% and 45% across cities. Exchange
traded funds are yet to take off, with barely 5% penetration.
The data presented here is applicable for SEC A and B only, who represent about
30% of urban India.

Source: Indicus Analytics

Gadgets

What type of gadgets do urban Indians buy? What is the difference across various
cities? Which are the favourite gadgets? Here are some answers.
Digicams are the most popular gadgets everywhere. Delhi leads in DTH and Play
stations, whereas Bangalore leads in digicams and ipods. Kolkata surprises with the
highest penetration of LCD television.

Video game/ Play stations

iPods

Digital camera/ Camcorder

Other cities

Direct-to-home connection Bangalore

Chennai
Kolkata
Mumbai
LCD Television Delhi(NCR)
All India

0% 10% 20% 30% 40% 50% 60% 70%

The 5 major cities clearly lead the rest of India in penetration of digicams. However,
in all other categories, there is little to separate the large cities from the smaller towns.
The data presented here is applicable for SEC A and B only, who represent about
30% of urban India.

Source: Indicus Analytics

How leveraged are urban Indians

How much of loans do urban Indians take? What kind of loans? How many actually
take loans of any kind? Here are some answers.
44% do not have any loans at all. Bangalore has the highest penetration of loans of
any kind – about 61% of the residents being in debt. Mumbai, surprisingly has only
50% of its residents in debt. This is however explained by the lower proportion of cars
and two wheelers in the city.

Others 22.5% 17.2% 13.20% 27.50% 15.60% 43.10%

Bangalore 25.2% 15.7% 11.70% 35.80% 11.30% 39.10%

Chennai 21.3% 12.5% 10.60% 35.20% 9.70% 43.10%

Kolkata 19.5% 17.2% 4.60% 27.60% 5.70% 47.10%

Mumbai 20.2% 11.4% 7.00% 26.50% 8.40% 50.00%

Delhi(NCR) 16.1% 26.1% 9.60% 25.70% 9.60% 45.00%

All India 21.6% 16.6% 11.00% 29.20% 12.20% 43.90%

Home loan Car loan Tw o w heeler Loan Personal Loan Others No Loan

Home loans have a penetration of 22% and Delhi has the lowest penetration. Personal
loans have a significantly high penetration in Bangalore and Chennai
The data presented here is applicable for SEC A and B only, who represent about
30% of urban India.

Source: Indicus Analytics