B30 assets accounts for 14% of the total industry AUM

Assets from B30 locations grew from Rs 3.23 lakh crore in May 2018 to Rs 3.32 lakh crore in June 2018. T30 assets meanwhile grew marginally from Rs 20.19 lakh crore to Rs 20.24 lakh crore, shows the latest AMFI data.

Interestingly, majority of B30 assets (65%) were in equity schemes due to higher retail participation. Also, majority of T30 assets were in non-equity schemes (63%) because of institutional presence. AMFI data shows that 94% of institutional investor AUM comes from T30 cities while 6% was from B30 cities.

Experts believe that the TINA (there is no alternative) factor is prompting investors to search for avenues with higher return potential. In addition, AMFI’s ‘Mutual funds sahihai campaign’ has helped spread awareness about mutual funds to all corners of the country.

Distributors have been instrumental in channelizing individual investors that include retail investors and HNIs in B30 cities. Of the Rs 3.23 lakh B30 AUM, Rs 24,527 crore has come from direct channel. Investment through direct plans is more common in T-30 cities with 13% of investments through that route.

AMFI to facilitate e-KYC of one crore investors in N-E

The Association of Mutual Funds in India plans to on-board at least one crore potential investors from the North-Eastern States into the mutual fund industry by doing their complete e-KYC (know your customer) through its campaign Jan Nivesh over the next six months.

AMFI has roped in National Securities and Depository (NSDL) and Central Depository and Services (CDSL) to do the e-KYC at investors’ campaigns. NS Venkatesh, CEO, AMFI, said there is a lot of scope for mutual funds in these untapped markets and the idea is to insist on people to start investing at least a day’s salary in mutual funds.

Even if 30% of one crore people start an SIP of just Rs.1,000 a month it will be a substantial inflow (of Rs.300 crore a month), he said. “By guiding investors attending the conference to do e-KYC, we are making them clear the first hurdle in mutual fund investment and it is for the individual fund houses to tap them later,” he added.

AMFI will not be sharing the data of people who have done e-KYC with mutual funds.

Source: Cafe Mutual, AMFI

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