AMFI T30 and B30 city categorisation

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The T30/B30 city categorisation is a geographic classification framework maintained by the Association of Mutual Funds in India (AMFI) that divides Indian cities into two groups: the Top 30 cities (T30) by mutual fund assets under management, and the Beyond 30 cities (B30) comprising all other cities and towns. The framework underpins a differential incentive structure for ARN-registered mutual fund distributors who mobilise investments from B30 locations, and it provides SEBI and AMFI with a standardised tool for monitoring the geographic distribution of mutual fund investor participation across India.

Rationale

Mutual fund AUM in India has historically been highly concentrated in a small number of large cities. As of 2024, the top five cities – Mumbai, New Delhi/NCR, Bengaluru, Hyderabad, and Pune – together account for over 60 per cent of industry AUM. The T30 cities as a group represent roughly 85-90 per cent of total AUM. This geographic concentration reflects both the urban distribution of higher-income households and the historically limited penetration of mutual fund distribution networks in smaller towns.

Addressing this imbalance is a stated policy objective of SEBI and the government, because financial inclusion in mutual fund investing is seen as a channel for mobilising household savings into productive investment and enabling smaller-city residents to participate in capital market returns. The T30/B30 framework provides both a measurement tool and an incentive structure for addressing the imbalance.

T30 cities list

AMFI maintains an official list of T30 cities, updated periodically based on AUM data. The list is not static and can change as cities’ AUM rankings shift. As of the 2024-25 classification, the T30 cities include:

Mumbai, Delhi (NCR), Bengaluru, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Jaipur, Lucknow, Vadodara, Surat, Nagpur, Chandigarh, Indore, Coimbatore, Kochi, Bhopal, Visakhapatnam, Patna, Ludhiana, Bhubaneswar, Nashik, Rajkot, Kanpur, Amritsar, Agra, Varanasi, Madurai, and Meerut.

The precise list is defined in AMFI’s circulars and may differ from the above by one or two cities depending on the most recent revision. All cities and towns not on the T30 list constitute the B30 category.

B30 incentive structure

SEBI circular SEBI/HO/IMD/DF2/CIR/P/2018/135 formalised the differential commission structure for B30 inflows. Under this framework:

  • AMCs are permitted to charge a higher Total Expense Ratio (TER) on AUM from B30 locations, with the additional TER capped at 30 basis points (0.30%) per annum above the standard TER.
  • This additional 30 bps, collected from the scheme as a higher expense ratio, is available to be paid by the AMC as additional trail commission to distributors who specifically bring in B30 investors.
  • The purpose is to financially compensate distributors for the higher cost of operating in smaller cities: travel costs, lower average ticket sizes, and smaller scale of operations relative to large urban branches.

The B30 incentive is only payable on retail and HNI (non-institutional) AUM from B30 locations. Institutional AUM from B30 cities is not eligible.

AUM tracking and reporting

AMFI tracks the T30/B30 split as part of its monthly AUM data release and AAUM reporting. AMCs report the city of residence of each investor as declared in their KYC records to their RTAs, which aggregate and report the T30/B30 split to AMFI.

The monthly AMFI data release includes the total industry AUM attributable to T30 and B30 investors, expressed both in absolute rupee terms and as a percentage of total AUM. SEBI monitors trends in the B30 share of AUM as a financial inclusion metric.

Progress on B30 expansion

Despite the incentive structure, B30 AUM share has grown only modestly. As of 2024, B30 cities account for approximately 12-15 per cent of total industry AUM, up from around 8-10 per cent in 2018. The growth reflects:

  • the Mutual Funds Sahi Hai campaign’s regional language outreach;
  • the expansion of digital distribution platforms (apps with UPI-based SIP mandates accessible to anyone with a smartphone and bank account); and
  • the B30 commission incentive, which has brought additional distributor effort to smaller cities.

However, the pace of B30 AUM growth has been slower than SEBI’s aspirations, reflecting persistent barriers including lower financial literacy, lower formal employment, and the limited depth of financial advice networks outside major cities.

See also

References

  1. SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2018/135. “Scheme of additional TER for B30 cities.” September 2018.
  2. AMFI. “T30/B30 city list and update circulars.” amfiindia.com. Accessed 2026.
  3. AMFI. “Monthly industry AUM: T30/B30 split.” amfiindia.com. Accessed 2026.
  4. SEBI. “Annual report 2024-25: mutual fund geographic distribution.” sebi.gov.in.

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