The cities of Level II and III, collectively called Locations B30, are emerging as the growth engine of the mutual fund industry of India, according to a recent report published by CAMS on the 18th Mutual Fund Summit held by the Indian Confederation). As of January 2025, the B30 cities represented 56 percent or all the new SIP records, compared to 49 percent in fiscal year 23, which marked a compound annual growth rate (CAGR) or 64 percent.
Capital assets under administration (AUM) in the B30 cities have also maintained the rhythm of those of the T30 meters, growing at a composition rate or 46 percent during the same period. This has allowed B30 cities to retain a 26 percent participation of the general capital AUM of the mutual fund industry.
The report, entitled “Locations B30 – Performance and Potential”, is based on data from Cams MFDEX, which covers about 98 percent of Mutual Funds Indies AUM. The report indicates that the B30 investors base is now found in around 2 million rupees, which represents 58 percent of the first holder of investors among the CAM.
Speaking about the report, Rishi Kumar Bagla, president of the western region of CII, said: “The report is a testimony of the success of the regulatory forecast and the efforts of the collaborative industry. He is encouraging by witnessing Bharat’s investment with a conviction, backed by Yy backed by and advisor.” “” “” “
Retail participation continues with growth. Gross tickets in capital schemes from Locations B30 have more than duplicate in two years, growing from ₹ 1.3 Lakh crore in fiscal year 23 to ₹ 2.7 Lakh Crore In fiscal year 200 distributors such as distributors of mutual funds (MFD) and registered investment advisors (RIA) have seen a significant traction, with SIP records led by RIA increased almost four times this period.
The data also point to a trend of diversification among B30 investors. The proportion of investors with exposure to more than four mutual fund schemes increased from 20 percent in March 2023 to 22 percent in January 2025. In addition, 47 percent of B30 investors are now investing in more than one funds.
The segmentation in terms of age shows that investors from 20 to 40 years represent 56 percent of the B30 investors base, indicating a growing interest of the younger demography. In addition, 74 percent of B30 investors focus only on capital schemes, with another 24 percent differ in multiple kinds of assets.
The cams report suggests that the impulse in locations B30 is driven by Sachet SIPS, increased digital adoption and access to financial advice services. The locations beyond the 10 main B30 cities are witnessing faster growth, underlining the potential of a deeper penetration in smaller cities.
The participation of B30 in the total AUM of the mutual fund industry is now 18 percent, excluding dominant cash institutions that are largely concentrated in the T30 cities.
Posted on April 15, 2025