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Last Updated : Nov 22, 2019 08:32 PM IST | Source: Moneycontrol.com

B30 cities contribute 16% to total MF assets; 64% AUM parked in equity schemes

Around 13 percent of retail investors chose to invest directly while 22 percent of HNI assets were invested directly

Beyond 30, or the next 30 locations beyond the top 30 cities, contributed nearly 16 percent to total mutual fund industry assets of Rs 26.14 lakh crore as of October-end.

The balance was contributed by T30 cities, or to the top 30 geographical locations in India, according to data from the Association of Mutual Funds in India (AMFI).

In the last two years, the Securities and Exchange Board of India (SEBI) has been pushing mutual fund houses to reach out to the hinterland for garnering assets. Towards this, the capital market regulator had classified cities as T30 and B30 (T stands for top and B stands for beyond).

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In FY19, assets from B30 cities grew 13 percent year-on-year (YoY) to Rs 42,368 crore.

A month-on-month (MoM) comparison shows that the AUM from B30 cities rose to Rs 4.07 lakh crore in October from Rs 3.99 lakh crore in September.

Similarly, AUM from T30 cities in October stood at Rs 22.07 lakh crore, up from 21.60 lakh crore a month ago.

B30 edited

B30-T30 asset mix

The asset mix for B30 cities continues to be largely inclined towards equities, with the latter contributing 64 percent in October.

In comparison, equity-oriented schemes accounted for 38 percent of the asset mix in T30 locations in October.

The higher concentration of debt in T30 locations is due to the presence of institutions in this segment.

According to mutual fund experts, the popularity of equities among retail investors has helped garner equity fund assets.

Also, AMFI’s investor education campaign has aided the industry to increase awareness of the mutual funds among investors in non-metros cities.

Retail versus institutional

An investor-wise analysis in October indicates that 24 percent of assets held by individual investors are from B30 locations while only 6 percent of assets are held by institutional assets.

Institutional assets are concentrated in T30 locations, accounting for 94 percent of the total. Individual assets include retail and high net worth individuals (HNI) assets.

Around 13 percent of retail investors chose to invest directly while 22 percent of HNI assets were invested directly.

Overall, 43 percent of assets of the mutual fund industry came directly. A large proportion of direct investments were in non-equity oriented schemes where institutional investors dominate.

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First Published on Nov 22, 2019 08:32 pm
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