The appetite of people towards equity investments in small cities and town is increasing.
AMFI’s latest data shows that B-15 locations have a better balance of equity and non-equity assets. In fact, equity-oriented schemes accounted for 51% in B-15 cities in February 2017.
There could be many factors behind this equity cult in the B15 market. To start with, AMCs have tie up with banks, especially public sector banks which a good presence in smaller towns. These banks are promoting equity funds as a wealth creation tool to investors to increase their revenue from commission. In addition, investor awareness campaigns held in smaller towns are also helping distributors acquire clients. These programs make people understand the benefits of long-term equity investments.
On the other hand, equity-oriented schemes accounted for 28% of the T15 assets in February 2017. The higher concentration in debt in T15 locations is due to the presence of corporates and institutions in this segment.
Overall, 17% of the assets of the mutual fund industry are now concentrated in B15 locations as on February 2017.