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Small Town Big Investors-How Tier 2 & 3 Cities Are Powering MF Foso Growth An Investor Education and Awareness Initiative by 581 Mutual Fund

The westment landscape in India has undergone a significant transformation with increased Branicialization of savings From traditional investments to mortem financial instruments, there has been a paradigm shift in investor behaviour. wanting wealth creation through participation in capital markets

dominated by tradition deposits, evolved to modern franciat product utual funds, RETT and ETF Whimul furid adoption was mitialty concentrated in metropolitan and The cities, recent trends indicate a significurt 2 and Tier 3 cities Cisfied as 630 or "Beyond Top 30 ces are emerging as powerful growth engines for the mutual fund industry

830 Cities Gaining Ground

According t Association of Mutual Funds in India (AMF), B30 locations accounted for 10% of the mutual fund industry's total cooets under management (AUM) of July 2025 AUM from regions rose from 1380 lakh crore in June 2025 to 14.20 lakh crore in July 2005, marking 16 monthly increase and a robust 2 ar-on-ymar growth Trom 1177 lakh core in July 2024 This surga reflects deepening financial pudration and growing investor cortidance

Key Trends Driving Growth

Monthly inflows through Dystamatic investment Plans have sho consistent growth even amat mastetvontity, inticating a shong investor praterance for plined long-term mestment strategies irrespective of market conditions. This shift refects increasing financial maturity and inclusion across diverse demographics.

1. Expanding Investor Base

Investur participation conte broaden, particularly in non-metru regions

total number of mutual fund folios rose by 32% year-or year, reaching 23.45 core in FY25 fro Growth and equity-oriented

2. SIPs Fueling Long-Term Inwesting

Systematic Imeestment Plans semain a comerstone of ratat partimpation Contributions sur 4524% toren FY25 New BP

registrations rose to 6.80 crore (from 4.20 crore in Fr24), while active SIF accounts reached 831 crие-1.2717% поне 7 reflects growing investor discipline ward long-

3. Demographic Stifts

Age vectors aged 25-40 dominate new foto registrations.

Inco e-ncome groups are leading SIP adoption typically investing 1500-22000 monthly

Gender: More woewn hom aewterning the Investment space, supported by digital platforms and cubeach programs

Geography States like Chandigarh Himachal Praded, and Dadra & Nagar Haveli report SP AUM shares exceding 40% of total MF ALIM

while regione the Macram. Dal

Maharashtra mman below 20%

What's Fuwilling the Surge?

Increased Inved sfforts by AMFI and other Mutual Fund Ho and growing digital adoption have played a poctai role wectution, arising financial iteracy and increasing comes to investment platforms. Asawamnest grove, so has participation particularly in mutual funds

Sevenshut und behavoisi factors are accseering mutual fund

Digital Perention Attuale smartphones and data puns have mate investing acous to miliona beyond major others. Governants digitisation provtoluns have been one of the major enablers for easy sccess in investment pro is the country

Fintech Expansion Multiple Sintech applications Zerodha, and Paytm Money have simpiified inmesting for first-time users in Th Series

Raing Aspirations. Young professionals and entrepreneurs in smallet town increasingly swingers for wealth crestion beyond traditional savings. They are looking to use mutual fund plan and acreve the goons achutionat

Towards A More inclusive Financial Future

The rise of mutual fund investments in Tier 2 and Tier-3 cities make a pivotal shift in india's Shancтай испвулит. Триниe regions are no longer pa

participants but active  contributors to the industry's growth Withinang targeted financial äteracy efforts, and evolving investor rondonte and enovation in offerings, the mutual funt industry is becoming more inclusive

end cortinus, orey termocratizes wealth creation but also strengthens the toundation for a mora resilient and balancet financial for India

mit deil only with regnaret Mutual Funds, detals of which can be vwihed on the SEB bankigon) under Intermediaries/Markel Infrastructure istitutions Peisel to website of mutual things for process of completing ane-time KYC Know Your Customer including process change in address, phone number bank details otc. Investors ma lodge rewed mtermediories t they are unsaturad with their responses GCORES facilitates you to lodge complaint on and subsequently siew its stathas


Disctaimen Mutual Fund investments are subject to market risk mad all scheme related documents carefully.

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