Archive · 16 Sep 2025
Mutual Funds Welcome Incentive Revamp, But Flow Gains Limited
SEBI, a financial regulator, has brought back incentives to encourage mutual funds to attract new investors from smaller cities.
Distributors who bring in new investors from these cities will get a small bonus, but it's not as big as before.
This is because the previous version was misused, so the new plan has tighter controls.
Experts think this will encourage some growth but not a huge jump in investments.
The goal is to get more people in smaller towns to invest in mutual funds.
The new scheme limits the bonus per investor to prevent misuse.
SEBI revived incentives for distributors sourcing first-time investors from beyond top 30 cities.
The B-30 scheme was introduced in 2012 and scrapped in February 2023 due to misuse.
Distributors now receive 1% of the first application amount, capped at Rs 2,000 per investor.
Industry-level tracking via PANs will be used to ensure incentives are not duplicated.
B-30 assets currently account for about 18% of the industry’s total AUM.
- Who
- Mutual fund players and SEBI.
- What
- SEBI revived incentives for distributors sourcing first-time investors.
- When
- The scheme was revived.
- Where
- B-30 cities (beyond top 30 cities).
- Why
- To encourage mutual fund penetration in smaller towns.
- Policy
- SEBI revived incentives for distributors
- Target
- First-time investors from beyond top 30 cities (B-30)
- Incentive Structure
- 1% of first application or SIP investment, capped at ₹2,000 per investor
- Previous Scheme
- Discontinued in February 2023 due to misuse.
- B-30 Assets
- 18% of industry AUM currently