According to a recent report , AUM of the mutual fund industry rose 30.35 per cent to Rs. 19.97 trillion led by over 41 per cent surge in inflows from small towns or the B15 cities. “Smaller towns or B15 (beyond top 15 cities) cities accounted for 17.7 per cent of total AUM as of July, thanks to a 41.3 per cent surge to reach past Rs. 3.60 trillion in July from Rs. 2.55 trillion a year ago helping the industry AUM to grow over 30 per cent to Rs. 19.97 trillion,” Icra said quoting Amfi data.
According to the report, there is a better balance of equity and non-equity assets at 5:4 in B15 locations compared with 1:2 in the T15 (top 15) cities. Also, the share of direct plans in B15 centres is 22.7 per cent against 45.2 per cent in the T15 cities.
The industry AUM had touched Rs. 10 trillion in May 2014 and in a short span of three years, it has nearly doubled, the report said. Investors pumped Rs. 63,504 crore into mutual funds in July with income, equity (including equity linked savings schemes or ELSS), and balanced funds witnessing the highest inflows. The three categories saw net inflows of Rs. 60,084 crore, Rs. 12,727 crore and Rs. 7,864 crore respectively, the report said.