MFs struggle to crack B30 code, shares remain in 15-17% range of AUM

The assets under management (AUM) for domestic mutual funds (MFs) have grown at a good clip, but the industry has failed to make significant inroads in the hinterlands.

At the end of March 2021, the AUM from T30 (top 30) cities stood at Rs 26.07 trillion, while that from the so-called B30 (beyond 30) cities stood at just Rs 5.36 trillion.

The share of B30 cities has remained in the range of 15-17 per cent of the AUM since FY19.

Industry players say improving the penetration beyond the top centres will require setting up more branch networks and empanelment of distributors. Further, the