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Smaller towns race ahead in mutual fund distributor growth, but AUM gap remains wide
Mint 1 hr ago·1 Sept 2026, 6:39 am
The mutual fund industry is seeing a significant shift in where its distributors are located. Over the last five years, the number of distributors in smaller towns has surged by 61%, driven by easier entry rules and the rise of digital platforms. This growth suggests that financial services are becoming more accessible to people living outside major metropolitan areas.
However, a clear gap remains between the number of distributors and the actual money being invested. Despite the increase in local presence, smaller towns, often referred to as B30 locations, still hold only about 18% of the industry's total assets under management. This indicates that while the network is expanding, the volume of investment in these regions lags behind that of larger cities.
For investors, this trend points to a gradual move toward financial inclusion. As technology lowers the barrier to entry, the reach of mutual funds is broadening. However, the wide asset gap suggests that the market in smaller towns is still in a nascent stage and has significant room for future growth.
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