47% of B30 investors are invested in only one MF scheme

A recently released report by the CAMS and CII (Confederation of Indian Industry) shows that 47% of the total B30 MF investors are only invested in one scheme as of January 2025.

Report shows that of the total 2.08 crore investors in B30 cities, 98 lakh investors have invested in a single scheme only.

Further, 42 lakh or 20% of the investors have exposure to two schemes while 23 lakh or 11% investors are invested in three schemes.

Interestingly, 22% or 45 lakh investors have exposure to four or more schemes in their mutual fund portfolio. This proportion has increased from 20% in March 2023.  

Here are other key highlights of the report:

Exposure to fund houses

• The report highlights an interesting trend that 61% B30 investors, about 1.3 crore, have invested in schemes of one fund house indicating brand loyalty
• About 40 lakh or 19% investors in B30 cities have invested in schemes of two fund houses while 20 lakh or 10% investors invested in schemes of three fund houses
• 6% investors or 12 lakh investors have assets in schemes of over five fund houses

Investor base growth

• The investor base in B30 locations has grown from 1.03 crore in March 2023 to 2.08 crore in January 2025
• The number of investors in B30 cities has grown at 36% CAGR between March 2023 to January 2025 compared to investor base in T30 cities which grew at 22% CAGR in this period

SIP registrations

• The share of B30 locations in new SIP registrations has increased from 49% in FY23 to 56% in FY25 (until January 2025)
• New SIP registrations in top 10 cities of B30 regions like Cochin, Dhanbad and Aurangabad have grown at a CAGR of 45% CAGR in two years. In FY25, these cities have contributed to 7% of the new SIP registrations
• The next 25 B30 cities like Visakhapatnam, Jalandhar, Jodhpur etc. have contributed to 18% of the new SIP registrations in FY25
• The next 50 cities including Gandhinagar and Durgapur have contributed to 22% of the SIPs registered in FY25
• The next 100 cities in B30 locations like Panchkula, Bankura and Gandhidham have contributed to 29% of the newly registered SIPs
• Other B30 cities, which include some of the smaller locations of the country like Wardha, Haldia, Bettiah etc. have contributed to 24% of the SIPs registered in FY25. These locations have also recorded the highest growth in SIP registrations at a noteworthy CAGR of 74%

B30 SIP registrations by distributor type

• New SIP registrations in B30 locations have increased from 1.11 crore in FY23 to 2.74 crore in FY25
• The share of direct plans in new SIP registrations has increased from 33% in FY23 to 49% in FY25
• About 1.36 crore out of the 2.74 crore new SIPs in FY25 have come through direct plans
• On the other end, the share of MFDs in new SIP registrations has decreased from 28% in FY23 to 16% in FY25

B30 gross sales by distributor type

• In FY25, direct plans have contributed to 17% of the gross sales in equity schemes in B30 cities, increasing from 10% in FY23
• Meanwhile, MFDs have seen a decrease in share of gross sales in equity schemes from 39% in FY23 to 31% in FY25
• National distributors have contributed to 13% of the gross equity sales in B30 locations in FY25. Their share has remained unchanged during this period

AUM growth

• B30 AUM has grown from Rs. 6.8 lakh crore to Rs. 12.5 lakh crore during the period from January 2023 to March 2025 at a 39% CAGR
• Equity asset class has seen a high CAGR growth in B30 AUM of 46% from Rs. 5.4 lakh crore to Rs. 10.8 lakh crore
• Debt and cash asset classes have grown at a 6% CAGR each while other asset classes (hybrid, gold etc.) have grown at 50% CAGR

 Asset class exposure

• 74% investors in B30 locations have exposure in only equity schemes showing a lack of asset allocation
• 24% of the B30 investor base has exposure to multiple asset classes while the proportion of investors invested only in debt and liquid asset classes is 1% each

Proportion of investors by gender

• Women constitute 28% of the B30 investors while in comparison, women investors make up 35% of the T30 investor base

B30 investor holding

• The AUM of 32% investors in B30 cities is less than Rs. 10,000 while 21% investors have assets between Rs. 10,000 – Rs. 50,000
• 10% of investors have assets between Rs. 50,000 – Rs. 1 lakh while 22% of the investors have a holding between Rs. 1 lakh – Rs. 5 lakh
• 6% of the B30 investors have AUM between Rs. 5 lakh – Rs. 10 lakh while 5% have recorded holdings of Rs. 10 lakh – Rs. 25 lakh
• 2% investors have assets between Rs. 25 lakh – Rs. 1 crore while 0.3% investors have holdings over Rs. 1 crore

B30 investor demographic

• According to the report, the number of investors in the 20-30 age group have seen the highest growth
• The 31-40 years age group forms the highest proportion of B30 investors at 30% while the 20-30 years age group is second forming 26% of the investor base
• Third on the list is the 41–50-year age group with 17% proportion in the investor base while above 60-year age group is next with a 10% share in the investor base
• 51-60 year age group is fifth on the list with a 9% share of the B30 investor base
• Below 20-year age group also forms 1% of the B30 investor base