B30 AUM in mutual funds grew higher than T30’s

In a recently issued consultation paper, SEBI proposed a change in the B30 incentive structure. MFs can now charge up to 0.30% of daily net assets if the new inflows come from retail investors beyond top 30 cities (B30 cities). In 2012, SEBI classified regions as Top 15 cities (T15) and Beyond 15 cities (B15) for operational convenience. In April 2018, it revised this definition to T30 and B30. Latest AMFI data shows that the AUM of the B30 grew at 81% in the last four years as compared to 61% of the growth in the T30 AUM. Distributors such as PSU banking channels and IFAs play an important role in rural areas to garner MF investments.