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Contributions from areas beyond top 30 metro regions drive mutual fund investment growth
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The geographical categorisation established by the Securities and Exchange Board of India (SEBI), commonly referred to as B-30, categorises cities based on various criteria such as financial infrastructure and overall development.
In a notable development within the mutual fund (MF) industry, assets under management (AUM) have surpassed the significant milestone of ₹50 lakh crore. Notably, there has been a substantial contribution from B-30 cities—areas beyond India’s top 30 metro regions—highlighting a noteworthy shift in investment dynamics.
The geographical categorisation established by the Securities and Exchange Board of India (SEBI), commonly referred to as B-30, categorises cities based on various criteria such as financial infrastructure and overall development.
This classification provides insights into the distribution of mutual fund assets, offering visibility into emerging investment patterns.
Rushabh Desai, Founder of Rupee with Rushabh Investment Services, and Abhishek Tiwari, Executive Director and Chief Business Officer at PGIM India MF, provided insights into this significant trend.
Desai noted, “Between March 2023 and March 2024, we observed 35% growth in absolute terms. While B-30 cities have contributed significantly, they still represent approximately 18% of the total, with the top 30 cities accounting for a substantial 82% share. This indicates a contribution of approximately ₹45 lakh crore from the top 30 cities, with around ₹10 lakh crore originating from areas beyond these major urban centers.”
He further highlighted the increasing penetration of equity investments from B-30 cities in recent years, signaling a growing interest in financial markets within these regions.
Tiwari commented on the trajectory observed in B-30 cities, emphasising the prevalence of equity investments in their investment portfolios.
“The journey in B-30 cities has primarily been focused on equity investments. However, amidst this growth, it’s essential for the MF industry and stakeholders to prioritise education. While ‘mutual funds sahi hai’ has become a popular phrase, understanding the rationale behind investment decisions is crucial,” Tiwari explained.
As the investment landscape undergoes continual evolution, the comparison between smaller cities and their metropolitan counterparts presents an engaging narrative.
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