Small towns account for 16% of MF asset base; Maharashtra contributes most


Industrialist Amfi said that small cities or B30 cities contributed 16 per cent to the average wealth of the mutual fund industry under management of over 28 trillion till October-end, while state-wise Maharashtra remained the largest contributor to the asset base, industry body Amfi. he said .

For the past few years, market regulator SEBI has been pushing asset management companies to reach smaller cities to expand their asset base.

B30 (beyond the top 30 cities) accounted for 16 percent of the total industry average assets under management (AAUM) in October this year, and the balance was contributed by the T30 cities, or the top 30 places in India, the mutual fund association industry. (Amfi) said.

The wealth of B30 locations increased to 4.61 trillion by the end of October, a 3 percent increase from Rs 4.47 trillion at the end of September.

Harshad Chetanwala of MyWealthGrowth.com said, “There has been a steady increase in investment from B30 locations. Their share in individually held total equity assets is close to 27 percent and is growing at a reasonable rate.”

He said, “This is encouraging because investors across the country should get the benefit of investing in instruments like mutual funds. Even the interest levels of these cities have been high to understand how mutual funds help them in the long term Can do, ”he said.

B-30 locations move towards equity schemes as 65 per cent of the property comes from equity schemes, while it is 35 per cent for ‘top 30’ cities.

About 15 percent of retail investors chose to invest directly, while 24 percent of HNI’s assets were directly invested.

“In addition, 47 percent of the assets of the mutual fund industry came directly. A large proportion of direct investment in non-equity oriented schemes is dominated by institutional investors.”

The total AAUM of the mutual fund industry stood at Rs 28.34 trillion at the end of October compared to Rs 27.74 trillion at the end of the previous month.

In terms of state-wise contribution, Maharashtra continued to be the largest contributor (43.8 per cent) of the industry’s AAUM in October this year, followed by 8.4 per cent in New Delhi, 6.9 per cent in Gujarat and Karnataka and 5.2 per cent. By West Bengal.

Individual investors mainly hold equity-oriented schemes while the entities hold liquid and debt-oriented schemes.

About 68 percent of individual investor assets are held in equity-oriented schemes, on the other hand, 75 percent of the assets of institutions are held in liquid, money market and other debt-oriented schemes.

In September, Sebi chairman Ajay Tyagi had said that the attraction of mutual fund schemes has slipped towards urban centers.

“We need to make more efforts to popularize mutual funds in areas beyond the top 30 cities,” he said.

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