Investing T30 B30 AMFI

T30/B30 categorisation in Indian mutual funds

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T30/B30 is the AMFI geographic categorisation that distinguishes the top 30 cities (T30) from beyond the top 30 cities (B30) for mutual fund distribution incentive purposes. The categorisation is a SEBI-recognised framework that drives higher TER (expense ratio) allowance for B30 inflows, designed to incentivise AMCs and distributors to drive mutual fund penetration in smaller Indian towns and rural India.

For Indian retail investors, T30/B30 is relevant indirectly:

  • B30 mutual fund schemes may carry slightly higher TER (per SEBI TER framework ).
  • Distributors in B30 cities earn higher commission, encouraging service in tier-2 and tier-3 towns.
  • The framework reflects SEBI’s broader financial-inclusion objective.

Framework

T30 cities

The top 30 cities by AUM (per AMFI monthly AUM data ) constitute T30. The list is updated periodically; recent examples include:

  • Mumbai
  • Delhi NCR
  • Bengaluru
  • Chennai
  • Kolkata
  • Pune
  • Ahmedabad
  • Hyderabad
  • Lucknow
  • Surat
  • (Plus 20 more)

T30 cities are typically large metros and major state capitals where mutual fund penetration is already substantial.

B30 cities

All cities and rural areas NOT in T30 form B30. Examples include:

  • Tier-2 cities: Indore, Coimbatore, Vadodara, Jamshedpur, Trivandrum.
  • Tier-3 cities: Madurai, Jamnagar, Bilaspur.
  • Rural and semi-urban areas.

SEBI TER framework

Per SEBI TER regulation , AMCs can charge:

B30 incremental TER

  • Up to 30 bps higher TER on B30 inflows.
  • Specifically: 30 bps of inflows from B30 cities can be added to the standard TER.
  • Capped per SEBI’s October 2018 framework (refined further over time).

Conditions

  • B30 inflow tracking must be precise (verified by RTAs).
  • Excess collection (above what’s used for B30 expense) must flow to investor education / Mutual Funds Sahi Hai campaign or similar.

Distributor commissions

For distributors in B30:

  • Higher commission rates from AMCs (compensating for lower-volume, higher-effort sales).
  • AMFI tracks distributor city / pincode for accurate categorisation.

Policy intent

The T30/B30 framework aims to:

  1. Drive penetration: Mutual fund penetration in B30 is below 10%; T30 is 30%+.
  2. Reward outreach: AMCs and distributors economically incentivised to expand outside metros.
  3. Distribute investor education: Excess B30 TER funds investor-awareness campaigns.

Implementation timeline

  • Pre-2018: B15 / Beyond 15 cities framework (top 15 cities only).
  • October 2018: Expanded to T30/B30 per SEBI circular.
  • Subsequent refinements: Periodic SEBI updates on cap and conditions.

See also

External references

References

  1. SEBI circular on TER and B30 incentive framework (October 2018).
  2. AMFI Best Practice Guidelines on B30 categorisation.
  3. AMFI monthly AUM and city-wise composition data.

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