Chandigarh, Nov 20 (IANS): Individual investors in Punjab have opted for a higher allocation to equity products in their mutual fund portfolio at 68.11 per cent compared to the national average of 64 per cent, Karvy Private Wealth said on Wednesday.

Chandigarh, Ludhiana, Amritsar and Jalandhar have all recorded a higher equity share in total assets under management than the national average.

Overall, mutual funds grew by a healthy 9.99 per cent year over year in Chandigarh, Karvy Private Wealth CEO Abhijit Bhave told media here.

Quoting 'India Wealth Report 2019', he said investors in Punjab have placed their trust in equity the most.

According to him, tier-2 and tier-3 cities will be significant contributors to mutual fund assets under management growth in the years ahead.

While equity seems to be the favourite asset class, keeping in mind the volatility in the markets, term deposits continue to remain a safe bet for investors, he said.

Overall growth rate in deposits is close to the national growth rate.

Among the cities in Punjab, Chandigarh recorded the highest year over year growth at 12.12 per cent, followed by Amritsar at 11.39 per cent.

"Direct equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through. We believe that India's drive towards a $5 trillion economy will have a cascading positive effect on the individual wealth by 2024," Bhave told IANS.

The report said there would be a continued shift towards financial assets in India in the near future as well.

Massive investment in infrastructure and green energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pickup in consumption.