In May 2022, about 75 percent of mutual fund assets held by investors outside India’s top 30 cities sat in equity-oriented schemes. By June 2025, that figure had climbed to 86 percent. This is not a snapshot comparison between two city types. It is a genuine multi-year trend, and it is still moving in one direction.
This piece looks specifically at how B30 mutual fund investors’ equity allocation has grown over time, what is actually driving that growth, and what nuances are worth understanding before treating the trend as a simple story of smaller-town investors turning increasingly bold.
Looking at AMFI’s own data across several points in time makes the direction of travel clear.
| Period | B30 Equity Share | T30 Equity Share |
|---|---|---|
| May 2022 | 75% | ~44% |
| June 2024 | 85% | N/A (not separately disclosed) |
| June 2025 | 86% | 54% |
Over roughly three years, B30’s equity allocation rose 11 percentage points, while its overall share of industry AUM also grew, from about 17 percent in 2022 to 18 percent by early 2026. Both the size of B30’s asset base and the concentration of that base in equity have been increasing together, not just one or the other.
The SIP Angle: Where the Growth Is Actually Coming From
Much of this shift shows up most clearly in SIP flows specifically, since SIPs represent ongoing, deliberate investor decisions rather than one-off lump-sum choices.
| Metric | March 2021 | October 2025 |
|---|---|---|
| B30 active equity SIP inflows (monthly) | ₹2,832 crore | ₹10,080 crore |
| B30 share of total active equity SIP inflows | 36.8% | 41.4% |
SIP inflows into active equity schemes from B30 cities grew from 2,832 crore in March 2021 to 10,080 crore in October 2025, more than a three-and-a-half-fold increase. B30’s share of total active equity SIP inflows across the industry rose from 36.8 percent to 41.4 percent over the same period. Investors in smaller cities are not just contributing more money through SIPs; they are contributing a growing share of all the equity SIP money entering the industry nationally.
Why Is This Happening? Four Likely Drivers
Industry commentary and the underlying data point to a handful of overlapping reasons behind this sustained shift, rather than any single cause.
Digital access has removed much of the friction that once separated a smaller-town investor from equity investing specifically. Historically, debt and liquid funds were often easier to access through local bank branches, while equity fund distribution required either a dedicated advisor or comfort with paperwork that many smaller-town investors did not have. Mobile-first onboarding has narrowed that gap significantly.
A steadily expanding distributor network has brought personal guidance into markets that previously had little local advisory presence, and B30 investors have historically relied more heavily on face-to-face conversations with distributors than their T30 counterparts. That relationship appears to have nudged a meaningful share of B30 savings towards equity products that distributors are actively recommending for long-term goals, rather than the more conservative products that were traditionally easier to sell without much explanation.
A decade of investor awareness campaigns from AMFI and individual AMCs has built growing familiarity with equity mutual funds specifically, not just mutual funds as a category, as a legitimate long-term savings tool alongside gold and bank deposits.
And market performance itself has played a role. Strong equity markets over much of this period generated mark-to-market gains on existing B30 equity holdings, which mechanically increases equity’s share of the total portfolio even without any new money being added, a dynamic worth examining more closely.
Taken together, these four factors reinforce each other rather than operating independently. Easier digital access brings a new investor in; a local distributor conversation nudges that investor towards an equity fund rather than a fixed deposit; awareness campaigns make the investor comfortable with the idea of staying invested through short-term ups and downs; and strong market performance over several years rewards that decision, making the investor more likely to add further contributions and encourage others nearby to do the same.
A Closer Look: What Is Inside B30’s Equity Allocation
Breaking B30’s equity-heavy allocation into finer categories, rather than treating it as one block, adds useful texture to the headline number.
| Scheme Category | Approximate Share of B30 Assets |
|---|---|
| Pure equity schemes | ~76.5% |
| Balanced/hybrid schemes | ~9.2% |
| Debt-oriented schemes | ~11.8% |
Pure equity schemes make up the largest single component, with balanced or hybrid schemes adding a further share that behaves somewhat more conservatively than pure equity. Debt-oriented schemes make up a comparatively small slice of B30’s total allocation. This breakdown shows B30’s equity tilt is not solely concentrated in the highest-volatility pure equity category, though that category still dominates.
Is This Growth Entirely Organic, or Partly a Market Effect?
It is worth separating two different things that can both cause equity’s share of a portfolio to rise: investors actively choosing to put more new money into equity, and existing equity holdings simply growing in value faster than debt holdings during a strong market.
Both appear to be happening in B30. The growth in SIP inflows specifically into equity schemes reflects genuine, ongoing investor choice, since a SIP is a deliberate monthly decision rather than a passive market effect. At the same time, some of the increase in equity’s overall AUM share reflects mark-to-market gains on money that was already invested, which mechanically shifts the ratio even without new contributions. Disentangling exactly how much of the 75-to-86 percent shift comes from each source is difficult with publicly available data, but the sustained growth in equity-specific SIP flows suggests genuine investor behaviour is doing much of the work, not just market appreciation.
A Word of Caution on the Data
AMFI itself notes an important limitation in how B30 and T30 classifications work. The classification is based on the address recorded in an investor’s PAN details, not necessarily their current location. An investor who moved from a smaller town to a metro city without updating their PAN address would still be counted as a B30 investor in this data, and the reverse is also possible.
This does not undermine the broader trend, which has held up consistently across many years and multiple independent data releases, but it is a reasonable caveat to keep in mind before treating any single B30 statistic as a precise, individual-level measurement rather than a useful directional indicator.
A second, related caveat is that B30 is a large and varied category by definition, covering everything from prosperous tier-2 cities to genuinely rural pin codes. Averages calculated across this entire group can mask significant variation within it. A rising average equity share does not mean every part of B30 is moving at the same pace or from the same starting point, which is one more reason to treat the aggregate trend as context rather than a specific claim about any particular town or investor.
What This Means for B30 Investors Specifically
If you are investing from a B30 city or town, this data offers useful context, but it should prompt a specific question about your own portfolio rather than simple reassurance that you are following a positive trend.
| Your Situation | What to Check |
|---|---|
| You already hold a heavily equity-weighted portfolio. | Confirm it matches your time horizon and how close you are to needing the money, not just the regional trend. |
| You’re increasing your SIP amount into equity funds. | Make sure the increase is tied to your own goals and capacity, not simply following what others in your area are doing. |
| You’ve never experienced a real market correction | Consider whether your current equity allocation is one you can genuinely hold through a sharp fall without panicking. |
A rising equity allocation across B30 as a group does not automatically mean a rising equity allocation is right for you individually. It depends on your own time horizon, how close you are to needing the money, and how much volatility you can genuinely tolerate without making a panic-driven decision during the next correction.
This is exactly the kind of check worth doing with an advisor rather than assuming the regional trend applies to your specific situation. A VSJ FinMart advisor can help you look at your own equity allocation against your actual goals, rather than against what is increasingly common among other investors in your city or town.
Frequently Asked Questions on B30 Equity Exposure Growth
| Question | Answer |
|---|---|
| How much has B30’s equity allocation grown over time? | It rose from about 75% in May 2022 to 86% by June 2025, according to AMFI data, a sustained increase over roughly three years. |
| Is this growth mainly from new investors or existing investors adding more? | Both. SIP inflows into B30 equity schemes grew more than three and a half times between March 2021 and October 2025, reflecting genuine new investor decisions, while some growth also reflects market gains on existing holdings. |
| Does market performance explain the entire increase in B30’s equity share? | No, though it plays a role. Rising equity SIP contributions specifically suggest active investor choice is driving much of the shift, not just mark-to-market gains on existing holdings. |
| Is B30 data on equity allocation fully accurate at the individual level? | It’s directionally reliable but not perfectly precise, since B30 classification is based on PAN address records, which may not reflect an investor’s current city if they have since moved. |
| Should I increase my own equity allocation just because B30 investors as a group are doing so? | No. Your equity allocation should be based on your own goals, time horizon, and risk tolerance, not on what is common among other investors in your region. |
Final Words
Mutual fund investors in smaller cities are genuinely increasing their equity exposure, and the data shows this clearly across several years, not just a single snapshot. B30’s equity allocation rose from about 75 percent in 2022 to 86 percent by mid-2025, while B30’s share of the industry’s total equity SIP inflows grew from under 37 percent to over 41 percent over roughly the same window.
This shift reflects genuine, sustained investor behaviour, supported by wider digital access, a growing distributor network, and years of investor education, alongside some contribution from market performance itself. None of that changes what matters most for any individual investor, which is whether their own equity allocation, rising trend or not, actually fits their personal goals. A VSJ FinMart advisor can help you make sure it does, wherever in India you happen to be investing from.
Disclaimer
The information provided in this blog is for educational and informational purposes only and should not be construed as investment advice. Please consult a qualified financial advisor before making any investment decisions. Shashikant Chanderkumar Mudaliar (ARN: 319377), operating under the brand name VSJ FinMart, is an AMFI-registered Mutual Fund Distributor (MFD) and does not provide investment advisory services. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please read all scheme-related documents carefully before investing. Registration details can be verified at www.amfiindia.com/locate-distributor.