In the last quarter, assets from B30 cities (beyond top 30 cities) grew by Rs. 6,000 crore to touch Rs. 3.63 lakh crore in December, shows the AMFI data. This was 2% quarter-on-quarter increase. Compared to the start of the financial year (April 2018), the B30 AUM of the industry grew by 7.6% (from Rs. 3.37 lakh crore in April).
SEBI re-classified cities into T30 and B30 starting April 2018.
Unlike B30 assets, the total AUM of the industry contracted marginally by Rs. 22,803 crore to Rs. 24.09 lakh crore. This indicates a slowdown in T30 assets, during the quarter.
Overall, 15% of the industry’s AUM came from B30 locations in December 2018. If we dissect the flows further, we observe that non associate distributors are key drivers of individual investor inflows in both T30 and B30 cities. Around 70% of individual investor inflows in both T30 and B30 locations have been channelised by them.
Individual investors include both retail and HNI investors. Non-associate distributors are distributors other than sponsors of AMCs engaged in mutual fund distribution such as IFAs, bank and NDs.
Direct investments in T30 cities were higher (18%) compared to B30 cities (10%).
In contrast to individual investors, the institutional segment preferred direct plans. In T30 cities, 72% of the institutional investments were direct. Even in B30 cities majority of the corporate investments were direct. However, non associate distributors also had an significant contribution with 38% of the institutional AUM in B30 cities coming through them.
Overall, individual investors held 53.6% of the industry’s AUM amounting to Rs. 12.91 lakh crore in December. Of this 23% came from B30 locations and the rest is from T30 cities.
Just 6% of the Rs. 11.17 lakh crore institutional assets are contributed by B30 cities. Higher concentration of corporate offices in metro cities has contributed to this disparity.
Unlike T30 cities where a large institutional investor base means higher allocation to debt, B30 AUM is tilted towards equities. As of December 2018, 64% of the B30 assets were invested in equities compared to 38% of the T30 assets.
B30 and T30 AUM
T30 |
|||||||
Individual |
Institutional |
Total |
|||||
Direct |
Associate Distributor |
Non Associate Distributor |
Direct |
Associate Distributor |
Non Associate Distributor |
||
Dec-18 |
180581 |
103531 |
715558 |
750171 |
26159 |
269695 |
2045696 |
Sep-18 |
177820 |
105313 |
724479 |
737692 |
26635 |
302400 |
2074339 |
Apr-18 |
150385 |
101645 |
681219 |
734758 |
24939 |
290627 |
1983572 |
Share (%)(December) |
18% |
10% |
72% |
72% |
3% |
26% |
|
Q-o-Q change |
-1% |
||||||
YTD change |
3% |
B30 |
|||||||
Individual |
Institutional |
Total |
|||||
Direct |
Associate Distributor |
Non Associate Distributor |
Direct |
Associate Distributor |
Non Associate Distributor |
||
Dec-18 |
30097 |
63416 |
198074 |
37892 |
6295 |
27068 |
362842 |
Sep-18 |
28133 |
61955 |
199262 |
33595 |
6541 |
27515 |
357002 |
Apr-18 |
25555 |
54703 |
193624 |
28099 |
6820 |
28394 |
337194 |
Share (%)(December) |
10% |
22% |
68% |
53% |
9% |
38% |
|
Q-o-Q change |
2% |
||||||
YTD change |
8% |