B30 assets stand at Rs.3.60 lakh crore now

AMFI’s latest data shows that assets coming from B30 cities (beyond top 30 cities) grew by 6.1% to reach Rs. 3.57 lakh crore in August.

An analysis of data shows that 63% of the B30 assets come from non-associate distributors. Non-associate distributors are those distributors other than sponsors of AMCs. Of the remaining B30 assets, 19% came from associate distributors and 18% came from the direct channel. 

Overall, the country’s smaller towns or B30 cities accounted for 14.48% of the total industry AUM at the end of August 2018 with the balance 85.52% of the industry AUM being in the T30 locations.

Non-associate distributors (49%) and direct plans (45%) are the main drivers of T30 assets. Only 6% of the assets have come from associate distributors. This includes contribution in liquid funds.

Retail investors contributed 24% of the industry’s AUM. Of the Rs. 6.04 lakh crore, retail AUM of Rs. 4.14 lakh crore came from T30 cities and Rs. 1.91 lakh crore from B30 cities.  Consequently, we see that a substantial 31% of the retail AUM came from B30 cities. Experts believe that AMFIs investor awareness initiative ‘Mutual Fund Sahi Hai’ coupled with efforts made by all fund houses to increase their reach in smaller towns has played a crucial role in bringing retail investors in B30 cities under the mutual fund fold. 

Corporates contributed 42% of the industry’s AUM totalling Rs. 10.45 lakh crore. Unsurprisingly, majority (95%) of the corporate assets come from T30 cities as these cities house bulk of the corporates. To elaborate Rs. 9.92 lakh crore of the corporate AUM came from T30 cities while only Rs. 52,665 crore came from B30 cities.

T-30 and B-30 Asset Spread

Source: AMFI

Market share

Source: AMFI