Assets from B30 locations grew from Rs. 3.23 lakh crore in May 2018 to Rs. 3.32 lakh crore in June 2018. T30 assets meanwhile grew marginally from Rs. 20.19 lakh crore to Rs. 20.24 lakh crore, shows the latest AMFI data.
Interestingly, majority of B30 assets (65%) were in equity schemes due to higher retail participation. Also, majority of T30 assets were in non-equity schemes (63%) because of institutional presence. AMFI data shows that 94% of institutional investor AUM comes from T30 cities while 6% was from B30 cities.
Experts believe that the TINA (there is no alternative) factor is prompting investors to search for avenues with higher return potential. In addition, AMFI’s ‘Mutual funds sahi hai campaign’ has helped spread awareness about mutual funds to all corners of the country.
Distributors have been instrumental in channelizing individual investors that include retail investors and HNIs in B30 cities. Of the Rs.3.23 lakh B30 AUM, Rs. 24,527 crore has come from direct channel. Investment through direct plans is more common in T-30 cities with 13% of investments through that route.