AMFI’s latest data shows that B30 cities account for 16% or Rs.3.55 lakh crore of the Rs.22.26 lakh crore mutual fund industry in March.
Further analysis of the data shows that a majority of the B30 AUM comes from individual investors unlike T30 which has a more balanced contribution from individual and non-individual investors.
Of the total Rs.3.55 lakh crore B30 AUM, about 79% or Rs2.81 lakh crore came from individual investors. In the case of T30 AUM, close to 48% of its assets came from individual investors and 51% from non-individual investors. Individual investors include retail and HNI investors. Non-individual investors include banks, corporates and other institutions.
Both segments recorded higher contribution from regular plan. While close to 52% of the total AUM in T30 came from regular plan, about 78% of the total AUM came from regular plan in B30.
B30 cities have higher exposure to equity as these markets are predominantly retail. At the same time, assets from T30 cities are more debt oriented given the higher participation of institutional investors in these cities.
However, AUM growth in B30 and T30 cities witnessed a steep fall last quarter largely due to the mark to mark loss. The industry’s overall AUM slipped to Rs.22.26 lakh crore in March from Rs.27.23 lakh crore in February. The fall can be attributed to a sharp decline in equity markets in March following concerns over the rapid spread of coronavirus. Both Nifty 50 and Sensex corrected nearly 24% in March. Debt funds also witnessed steep outflows during March due to quarter end.
