AMFI’s latest data shows that B30 cities account for 15% of the total Rs.24.6 lakh crore MF industry assets.
AUM from B30 cities touched Rs.3.80 lakh crore in March 2019. A large proportion of the B30 assets (65%) come in equity funds. This is because of increasing popularity of equity among retail investors in these cities.
Analysis of data shows that assets from B30 cities increased by Rs.42,368 crore, a growth of 13%, between April 2018 and March 2019.
Experts believe that AMFI’s investor education campaign has increased awareness about mutual funds among investors in non-metros. In addition, easy access to internet and growth in online transaction platforms have also allowed investors who do not have easy access to physical distribution networks to invest in mutual funds. At a recent Cafemutual event, IFA Vishranth Suresh, co-founder Asset Plus an online investment platform, shared that a majority if his 7,500 clients are in B30 cities.
Distributors and IFAs have been instrumental in spreading the message of mutual funds among investors in B30 cities, be it through physical or online channels. Of the Rs.3.80 lakh crore B30 AUM, Rs.3.10 lakh crore (82%) have come through regular plans. Associate distributors or sponsors of AMCs have channelized Rs.73,390 crore through bank branches in B30 locations while the rest have been brought by non-associate distributors.
Source: AMFI
Investor-wise analysis of the data shows that B30 cities account for 23% of individual assets of the industry. Individual assets include retail and HNI assets. B30 cities, however, account for only 6% of institutional assets as on March 2019.
B30 AUM -Investor-wise
Source: AMFI
