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Do you know which Indian cities are leading the way in mutual fund investments? The answer may not surprise you, but the gap between the top cities and the rest of the country is bigger than you think.
According to the latest data from AMFI (Association of Mutual Funds in India) and CRISIL Intelligence, just five cities account for more than 52% of total mutual fund Assets Under Management or AUM in India. Despite growing awareness in smaller towns and the rise of SIPs, mutual fund investments remain heavily concentrated in urban metros.
Let’s take a closer look.
Top 5 Cities with Highest Mutual Fund AUM (As of March 2025)
Here’s the city wise contribution to India’s mutual fund AUM:
| City | Contribution to Total AUM |
|---|---|
|
Mumbai
|
27.01%
|
|
New Delhi
|
12.63%
|
|
Bengaluru
|
5.39% |
|
Pune
|
4.00% |
|
Kolkata
|
3.49% |
These five cities alone contribute 52.52% of India’s mutual fund investments.
- Next 10 cities: 12.61%
- Next 20 cities: 5.48%
- Next 75 cities: 6.53%
This means over 77% of India’s mutual fund AUM is coming from just 110 cities, with a heavy skew toward metros. Despite regulatory pushes like B30 initiative (encouraging investment from beyond the top 30 cities) participation from smaller towns remains limited.
Age Wise Investment Trends in Mutual Funds
Along with city wise data, investor preferences also vary with age:
- Young Investors (25–44 years)
- Prefer equity mutual funds
- About 60% of their investments go into equity schemes
- This marks a sharp rise from 36% in FY2020
- Middle-Aged Investors (45–58 years)
- Invest even more confidently in equities
- 66% of their mutual fund assets are in equity
- 11% in hybrid funds and 16% in debt schemes
This shift shows growing awareness and risk appetite across age groups, especially among urban investors.
This indicates one thing clearly: India’s mutual fund growth story is still metro-led. To truly deepen participation, the next wave of growth must come from Tier-2 & Tier-3 cities.
With better access, digital platforms and financial literacy programs, small-town investors can play a much bigger role in the market. The rise of direct plans, robo-advisory tools, and awareness campaigns can accelerate this transition.
Final Words
If you are an investor from a non-metro city, don’t let geography hold you back. Whether you’re in Meerut, Nagpur or Patna, the power of mutual fund investing is just a few clicks away. All you need is the right information and tools to make smart decisions aligned with your goals.
Looking to start your mutual fund journey? Begin with a simple SIP of ₹5,00 or even less. Explore funds based on your risk profile, time horizon, and financial goals. Use trusted platforms and always invest with a longterm vision.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
