B30 Assets Surge
In September, assets under management (AUM) in B30 locations saw a notable increase, climbing by 2.6% to reach ₹14.50 lakh crore, a recovery from a dip
in August. The most substantial segment of investments in both B30 and T30 locations was in Growth and Equity Oriented Schemes. In B30 cities, assets in these schemes grew to ₹11.11 lakh crore from ₹10.81 lakh crore the previous month. T30 cities also saw considerable investment in these schemes, totaling ₹31.80 lakh crore. This signifies a strong investor preference for growth-oriented strategies, particularly in the smaller cities and towns, which indicates a growing awareness and acceptance of equity-linked investments across different segments of the country.
Investor Participation Shifts
The participation of individual investors in B30 locations saw a minor rise, moving from 27.44% in August to 27.52% in September. Conversely, institutional investments continued to be concentrated in T30 cities, accounting for only 4.93% of the assets in B30 locations. Retail investors, across the industry, continued to favour direct investments, with 27.37% choosing this route in September, slightly up from 27.14% in August. A considerable portion of High Net Worth Individual (HNI) assets, approximately 28.90%, were directly invested, revealing a consistent trend towards self-directed investing among affluent investors. Overall, 47.70% of mutual fund industry assets were directly invested, a slight decrease from August's 47.92%, while contributions from Non-Associate Distributors edged up from 45.75% to 45.96%.
AMFI's Strategic Initiatives
The Association of Mutual Funds in India (AMFI) recognizes the B30 cities as a key focus area. As AMFI Chair Venkat Chalasani mentioned in a Moneycontrol conversation, the organization is actively collaborating with colleges, universities, and India Post to increase financial literacy in smaller towns and rural districts. This strategy leverages the credibility of local channels. Foundation-level sessions are financially supported by the Investor Education and Awareness Fund, while advanced distributor training receives separate funding. This approach is rooted in the recognition that even in relatively prosperous regions, financial penetration is limited, with many investors still favoring traditional investment avenues like real estate, gold, or chit funds.
Literacy Campaigns Focus
These initiatives align with SEBI’s mandate, which tasks AMFI and other Market Infrastructure Institutions with running targeted literacy campaigns across specific states. This ensures a strengthened outreach in B30 locations, aiding in broadening the reach of financial education. This focus is particularly relevant given the preference for direct investments by retail investors across the industry, with 27.37% opting for the direct route in September, marginally up from 27.14% in August. These campaigns are crucial in fostering informed investment decisions and enhancing investor confidence in the mutual fund market, particularly in the B30 regions, thereby supporting the industry's sustained growth and broader market participation.
