What is the story about?
Mutual fund assets from India’s B30 locations, or smaller towns and cities, grew 2.6% month-on-month to reach ₹14.50 lakh crore in September 2025, up from ₹14.14 lakh crore in August, according to ICRA Analytics citing AMFI data.
On a yearly basis, assets from these locations increased 15%.
T30 locations, representing top 30 urban centers, also saw annual growth, with assets rising 14% in September 2025.
ICRA Analytics highlighted that B30 investors continue to favor equities. In September, 76.6% of B30 assets were invested in equity schemes, 9.1% in balanced schemes, and 11.7% in debt-oriented schemes.
By contrast, 30.4% of T30 assets were in debt schemes.
Individual investors from B30 locations accounted for 27.5% of the total individual mutual fund assets, while institutional investments from these regions remained limited at 4.9%.
The majority of institutional assets, 95.1%, were concentrated in T30 locations.
Direct investments remain popular among retail investors. Around 27.4% of retail investors chose direct plans in September 2025, while 65.3% invested via Non-Associate Distributors.
Among High Net Worth Individuals (HNIs), 28.9% of assets were invested directly.
Overall, 47.7% of the mutual fund industry’s assets were held through direct investments, with 45.96% routed through Non-Associate Distributors.
ICRA Analytics noted that these trends reflect the growing participation of retail investors from smaller towns in India’s mutual fund market, with a continued preference for equity schemes over debt instruments.
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On a yearly basis, assets from these locations increased 15%.
T30 locations, representing top 30 urban centers, also saw annual growth, with assets rising 14% in September 2025.
ICRA Analytics highlighted that B30 investors continue to favor equities. In September, 76.6% of B30 assets were invested in equity schemes, 9.1% in balanced schemes, and 11.7% in debt-oriented schemes.
By contrast, 30.4% of T30 assets were in debt schemes.
Individual investors from B30 locations accounted for 27.5% of the total individual mutual fund assets, while institutional investments from these regions remained limited at 4.9%.
The majority of institutional assets, 95.1%, were concentrated in T30 locations.
Direct investments remain popular among retail investors. Around 27.4% of retail investors chose direct plans in September 2025, while 65.3% invested via Non-Associate Distributors.
Among High Net Worth Individuals (HNIs), 28.9% of assets were invested directly.
Overall, 47.7% of the mutual fund industry’s assets were held through direct investments, with 45.96% routed through Non-Associate Distributors.
ICRA Analytics noted that these trends reflect the growing participation of retail investors from smaller towns in India’s mutual fund market, with a continued preference for equity schemes over debt instruments.
ALSO READ | WhiteOak Capital MF believes staying invested in midcap funds pays off, here’s how
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