Small towns account for 16 pc of MF asset base
   Date :23-Nov-2020

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THE contribution of small towns or B30 cities to mutual fund industry’s average assets under management of over Rs 28 lakh crore stood at 16 per cent as of October-end, while state-wise Maharashtra remained the biggest contributor to the assets base, industry body Amfi said. Since last few years, markets regulator Sebi has been pushing asset management companies to reach out to small towns for increasing their assets base.
 
B30 (beyond top 30 cities) accounted for 16 per cent of the total industry Average Assets Under Management (AAUM) in October this year, and the balance was contributed by T30 cities, or the top 30 locations in India, the Association of Mutual Fund Industry (Amfi) said. Assets from B30 locations increased to Rs 4.61 lakh crore as of October-end from Rs 4.47 lakh crore at September-end, a 3 per cent growth. “There has been a constant increase in investments from B30 locations.
 
They have close to 27 per cent share in the overall equity assets held by individual and it is growing at a reasonable rate,” said Harshad Chetanwala of MyWealthGrowth.Com. “This is encouraging as investors across country should get the benefit of investing in instrument like mutual funds. Even the interest levels from these cities have been high to understand how mutual funds can help them in long term,” he added. B-30 locations tend towards equity schemes as 65 per cent of assets are from equity schemes.