Mutual fund industry’s AUM in B30 (beyond top 30) cities has crossed Rs 4 lakh crore mark.
In July-September, AUM of B30 cities grew by Rs 7,000 crore to touch Rs 4.04 lakh crore. Meanwhile, AUM in T30 grew by Rs 19,000 crore to reach Rs 20.47 lakh crore at the end of September, shows recent AMFI data.
Here are some notable trends in T30 and B30 cities.
Individual vs institutional players
Further analysis of recent AMFI data shows that T30 assets have a more balanced distribution between individual and non-individual assets, while majority of the B30 AUM comes from individual investors.
Individual investors include retail and HNI investors. Non-individual investors include like banks, corporates and other institutions.
Of the total Rs 4.04 lakh crore AUM in B30 cities, close to 80% or Rs 3.20 lakh crore came from individual investors. The rest 20% or Rs 84,000 crore came from non-individual investors.
In case of T30 cities, the total AUM stood at Rs 20.47 lakh crore. Of this, nearly 53% or 10.79 lakh crore came from individual investors. The rest 47% or 9.68 lakh crore came from non-individual players.
Asset Mix
A large chunk of the B30 AUM came from equity-oriented schemes. This is because of the fact that individual investors mostly invest in equity funds.
Equity-oriented schemes include equity and balance funds. Non-equity oriented schemes include liquid and money market schemes and debt and debt-oriented funds.
Of the total B30 AUM, 64% came from equity-oriented schemes while the remaining 36% belonged to non-equity schemes in September. This ratio is reversed in T30 cities, as many institutional players are based in these cities. Nearly 62% of the total T30 AUM is invested in non-equity schemes.
Direct vs Regular
B30 cities recorded higher investments through the regular route.
Around 79% of the total B30 AUM is invested through regular plan as on September-end. Anecdotal evidence shows that typically, individual investors prefer to invest under the guidance of a financial advisor.
In case of T30 cities, only 55% of the total AUM is invested through regular plan. This is due to a sizable share of institutional investors who mostly invest in direct plans.
