The growth of assets for
B15 locations was 31% during March–December 2014, shows AMFI data.
SEBI’s nudge to AMCs to expand their reach beyond the top 15 cities seems to be yielding the desired results. The latest AMFI data shows that assets from B15 locations grew from Rs.1.41 lakh crore in March 2014 to Rs. 1.85 lakh crore in December 2014.
The
rate of growth for the overall industry was 26% during this period, while rate
of growth in assets for B15 locations was 31.18% during March till December
2014.
If we
look at the mix of assets in B15 locations, these towns have a better balance
of equity and non-equity assets. T15 locations are skewed in favor of
non-equity assets due to the concentration of institutional investors who
typically invest in non-equity products.
As the
markets continued to rise, there was a shift away from non-equity schemes to
equity schemes since March 2014. This was more marked in T15 locations. Equity
schemes accounted for 26% of the T15 assets in December 2014, up from 18% in
March 2014.
Of
the individual assets managed by the industry, 23% comes from the B15 locations
but only 11% of institutional assets come from these locations. The share of
B15 assets has increased for both categories since March 2014.
SEBI has allowed AMCs to charge higher expense ratio on assets sourced from beyond the top 15 cities. Fund houses have also hiked the commission structure for application received from these towns. The share of B-15 assets in the industry has gone up by 3% from 25% in September 2011 to 28% as on December 2014.
