Smaller Cities Like Kochi, Coimbatore and Pondicherry Drive SIP Boom
- Remin Francis I R
- Sep 26
- 3 min read
When we think of an “Indian investor,” the picture that often comes to mind is a man in a business suit, sitting in a Mumbai or Delhi office, glued to his stock terminal. But a ground-breaking RBI report reveals that this image is completely outdated. The real story of investing in India is being written not just in metros, but in tier-2 and tier-3 cities, and women are increasingly leading it. This is the story of how investing is finally becoming a movement for everyone, everywhere.
India’s New Investment Heartland Lies Beyond the Metros
The RBI study makes it clear: mutual funds are no longer just a metro phenomenon. The real growth engine today lies in smaller towns, known as B-30 cities (beyond the top 30 metros).
SIP Boom in Smaller Towns: The report highlights that new SIP accounts are growing faster in B-30 cities compared to major metropolitan areas. This shows that people in smaller towns are adopting disciplined investing habits just as confidently as their metro counterparts.
18% Share of Industry Assets: By June 2025, B-30 cities accounted for a solid 18% of the entire mutual fund industry’s assets. That’s no longer a side note; it’s a big chunk of the market.
The Catch-Up Effect: Even states that were earlier considered “laggards” are showing strong growth in mutual fund assets. RBI data shows smaller states are steadily catching up with the financial biggies.
Of course, Maharashtra still tops the chart, contributing over a quarter of all equity-oriented mutual fund assets in India. But the bigger story is that the rest of the country is catching up fast.
Beyond Geography: The Rise of the Woman Investor
While geography tells one half of the story, the most transformative shift is in who is investing. For years, investing in India was seen as a man’s world. But the RBI report shows women are now one of the fastest-growing investor groups.
A Growing Share: Women’s share of mutual fund industry assets has grown from 15% in 2017 to nearly 21% by the end of 2023.
The B-30 Revolution: The real surprise? Women investors in smaller towns are leading the way. In B-30 cities, their share of assets jumped from 17% to 28% in just a few years.
Want to read more?
Subscribe to finsightsbysquareleague.com to keep reading this exclusive post.
