Tier-II and III cities, collectively known as B30 areas, are rising as the expansion engine of India’s mutual fund business, in line with a latest report launched by CAMS on the 18th Mutual Fund Summit held by the Confederation of Indian Business (CII). As of January 2025, B30 cities accounted for 56 per cent of all new SIP registrations, up from 49 per cent in FY23, marking a compounded annual development charge (CAGR) of 64 per cent.
Fairness Property below Administration (AuM) in B30 cities have additionally saved tempo with these in T30 metros, rising at a CAGR of 46 per cent over the identical interval. This has enabled B30 cities to retain a 26 per cent share of the general fairness AuM of the mutual fund business.
The report, titled “B30 Places – Efficiency & Potential”, attracts from knowledge sourced from CAMS MFDEx, which covers round 98 per cent of the mutual fund business’s AuM. The report signifies that the B30 investor base now stands at round 2 crore, accounting for 58 per cent of the whole first-holder investor base serviced by CAMS.
Talking in regards to the report, Rishi Kumar Bagla, Chairman, CII Western Area, stated, “The report is a testomony to the success of regulatory foresight and collaborative business efforts. It’s encouraging to witness Bharat investing confidently, backed by entry, consciousness, and advisory.”
Retail participation continues to guide development. Gross inflows into fairness schemes from B30 areas have greater than doubled over two years, rising from ₹1.3 lakh crore in FY23 to ₹2.7 lakh crore in FY25 (until January). Distributors resembling mutual fund distributors (MFDs) and registered funding advisors (RIAs) have seen vital traction, with RIA-led SIP registrations rising practically four-fold throughout this era.
The info additionally factors to a diversification pattern amongst B30 traders. The proportion of traders with publicity to greater than 4 mutual fund schemes rose from 20 per cent in March 2023 to 22 per cent in January 2025. Moreover, 47 per cent of B30 traders are actually investing by a couple of fund home, suggesting a maturing funding strategy.
Age-wise segmentation exhibits that traders aged 20–40 years make up 56 per cent of the B30 investor base, signalling rising curiosity from the youthful demographic. Moreover, 74 per cent of B30 traders are targeted solely on fairness schemes, with one other 24 per cent diversifying throughout a number of asset courses.
The CAMS report means that the momentum in B30 areas is pushed by sachet-sized SIPs, rising digital adoption, and widening entry to monetary advisory companies. Places past the highest 10 B30 cities are witnessing sooner development, underscoring the potential of deeper penetration throughout smaller cities.
The share of B30 within the mutual fund business’s whole AuM now stands at 18 per cent, excluding cash-dominant institutional funds which are largely concentrated in T30 cities.
Revealed on April 15, 2025
