20–30 Age Group Shows Highest Growth in B30 Cities; Nearly Half Invest in 1 MF Scheme

As of January 2025, a joint report by CAMS and the Confederation of Indian Industry (CII) reveals that nearly half of the mutual fund investors in B30 (beyond top 30) cities—47% or 98 lakh out of 2.08 crore—are invested in just 1 scheme. This suggests a concentrated approach or possibly a nascent stage of financial literacy in these locations.

Another 20% (42 lakh investors) have exposure to 2 mutual fund schemes, while 11% (23 lakh) are invested in 3 schemes. Interestingly, the proportion of investors with diversified portfolios— 4 or more schemes—has increased from 20% in March 2023 to 22% (45 lakh) by January 2025.

Fund House Preferences Reflect Strong Brand Loyalty

The report also underscores a strong brand preference among investors. About 61% or 1.3 crore B30 investors are associated with a single fund house. A further 19% (40 lakh) have exposure to 2 fund houses, while 10% (20 lakh) are invested with 3. Only 6% or 12 lakh investors have allocated assets across 5 or more fund houses, highlighting limited diversification at the fund house level.

Rapid Growth in Investor Base

Between March 2023 and January 2025, the mutual fund investor base in B30 cities has grown significantly, from 1.03 crore to 2.08 crore, clocking a compound annual growth rate (CAGR) of 36%. In contrast, T30 cities have seen a 22% CAGR during the same period, indicating a faster adoption of mutual fund investments in emerging cities.

SIP Registrations See Widespread Surge

Systematic Investment Plans (SIPs) have witnessed increased traction in B30 cities. The share of B30 locations in new SIP registrations rose from 49% in FY23 to 56% in FY25 (up to January 2025).

In the top 10 B30 cities such as Cochin, Dhanbad and Aurangabad, SIP registrations have grown at a CAGR of 45% in 2 years, contributing to 7% of the new SIP count in FY25. The next 25 B30 cities, including Visakhapatnam, Jalandhar and Jodhpur, accounted for 18% of new SIPs. Another 22% came from the subsequent 50 cities, including Gandhinagar and Durgapur.

The remaining 100 B30 cities (e.g., Panchkula, Bankura, Gandhidham) contributed 29% of SIPs, while smaller towns such as Wardha, Haldia and Bettiah contributed 24%, recording the highest CAGR of 74% in SIP registrations.

SIP Registrations by Distribution Channel

New SIPs in B30 cities have increased from 1.11 crore in FY23 to 2.74 crore in FY25. The share of direct plan SIPs has increased from 33% to 49% during this time, with 1.36 crore SIPs in FY25 coming through direct plans.

Meanwhile, Mutual Fund Distributors (MFDs) saw their share decline from 28% in FY23 to 16% in FY25, indicating a growing preference for self-directed investing.

Read More: SIP Stoppage Ratio Hits Record High in March 2025: Over 51 Lakh SIPs Discontinued. 

Distributor-wise Gross Sales in Equity Schemes

In terms of gross equity sales in B30 cities, direct plans accounted for 17% in FY25, up from 10% in FY23. MFDs witnessed a decrease in share from 39% to 31% during the same period. National distributors maintained a stable share of 13% over both years.

Sharp Growth in B30 Assets Under Management

B30 Assets Under Management (AUM) rose from ₹6.8 lakh crore in January 2023 to ₹12.5 lakh crore by March 2025, representing a 39% CAGR. Equity AUM in B30 cities saw a robust CAGR of 46%, increasing from ₹5.4 lakh crore to ₹10.8 lakh crore.

Debt and cash categories registered 6% CAGR each, while hybrid, gold and other asset classes surged with a 50% CAGR, showing rising interest in alternative categories.

Asset Allocation Patterns Among B30 Investors

A significant 74% of B30 investors are solely invested in equity schemes, pointing towards low diversification. Only 24% have exposure to multiple asset classes. Meanwhile, just 1% each are invested exclusively in debt or liquid schemes.

Gender-Based Distribution of Investors

Female participation in B30 cities stands at 28%, trailing behind the 35% representation seen in T30 cities. This indicates a scope for improved financial inclusion among women in smaller towns.

Investment Holdings: How Much Are B30 Investors Allocating?

The report provides a detailed breakdown of AUM distribution among B30 investors:

• 32% have holdings below ₹10,000

• 21% have holdings between ₹10,000–₹50,000

• 10% fall in the ₹50,000–₹1 lakh bracket

• 22% hold assets worth ₹1 lakh–₹5 lakh

• 6% are in the ₹5 lakh–₹10 lakh range

• 5% have holdings between ₹10 lakh–₹25 lakh

• 2% are in the ₹25 lakh–₹1 crore bracket

• 0.3% have portfolios exceeding ₹1 crore

This shows that while a majority of investors have relatively modest investments, a small segment is building substantial wealth through mutual funds.

Age-Wise Investor Demographics

The report also maps out the age distribution of B30 investors:

• The 31–40 age group forms the largest segment at 30%

• The 20–30 bracket follows closely at 26%, and has also recorded the highest growth

• 41–50-year-olds comprise 17% of the investor base

• The above-60 age group stands at 10%

• 51–60-year-olds represent 9%

• The below-20 age group makes up 1%

This data suggests a youthful tilt in mutual fund participation from B30 cities, which could have long-term implications for the industry’s growth.

Conclusion

The CAMS-CII report highlights the evolving investment patterns in B30 cities—marked by growing investor participation, rising SIP penetration, and increased AUM. While there remains room for improvement in terms of diversification and asset allocation, the overall trend points towards deeper mutual fund penetration in India’s emerging cities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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