Small investors from small towns in India have preferred equity mutual funds the most among MFs. MF industry body AMFI's data shows that about 86% of the retail investors from the beyond top 30 cities prefer investing in the equity funds. The other preferred categories are balanced funds and debt funds. Experts believe that AMFI's mutual fund sahi hai campaign helped attract more retail flows from these smaller cities. One other reason behind an increased inflow from smaller towns was lower interest rates offered by fixed income instruments such as bank FDs and attractive returns from equity assets over the last few years.