Archive · 11 Aug 2025
Smaller Cities Drive Mutual Fund Growth in India
Mutual funds are becoming more popular, especially in smaller cities and towns.
Investments are growing faster in these areas than in larger cities.
States like Uttar Pradesh and Rajasthan are seeing strong growth in mutual fund assets.
Investors in smaller cities tend to prefer equity funds.
This shift is due to increased awareness, easier access through digital platforms, and financial inclusion.
Smaller cities and towns are experiencing faster mutual fund AUM growth than larger cities.
Uttar Pradesh has surpassed Tamil Nadu in mutual fund assets.
B30 city AUM grew at 28% CAGR in the last five years, faster than T30 cities.
Equity funds are favored investments in smaller cities and towns.
States like Uttar Pradesh and Rajasthan have seen strong AUM growth.
- Who
- Mutual fund investors, especially those in smaller cities and towns.
- What
- Growth and changing investment patterns in the mutual fund sector, particularly in smaller cities and states.
- When
- June 2020-June 2025
- Where
- India, with a focus on different states and cities.
- Why
- To highlight the shift in investment trends and the increasing popularity of mutual funds in various locations.
Investment Locations
Fund Preferences
Growth Rate
Investment Locations
Larger cities historically led in mutual fund investments.
Fund Preferences
Smaller cities and towns are now growing faster.
Fund Preferences
Investment Locations
Equity funds are relatively less preferred.
Fund Preferences
Equity funds are highly preferred in smaller cities.
- Overall Industry AUM
- ₹75-lakh crore
- B30 City AUM (June 2025)
- ₹14-lakh crore (18.5% of total AUM)
- T30 City AUM Growth (5 years)
- 23% CAGR
- B30 City AUM Growth (5 years)
- 28% CAGR
- Equity Funds in B30 Locations
- 86% of AUM
- Equity Funds in T30 Locations
- 54% of AUM
- UP Mutual Fund AUM (June 2025)
- ₹3.51-lakh crore
- Tamil Nadu Mutual Fund AUM (June 2025)
- ₹3.39-lakh crore
Sources
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