New Delhi, Sept. 1 -- India's smaller cities are fast catching up with the major centres in mutual fund distribution. The gap in mutual fund distributors (MFDs) between India's top 30 cities (T30) and those beyond the top 30 (B30) is shrinking rapidly, driven by significantly faster distributor growth in smaller locations. However, the overall gap in assets under management (AUM) remains wide.

As of March 2026, B30 towns had about 18,000 fewer MFDs than T30 cities, according to a study by Crisil Intelligence and the Association of Mutual Funds in India (Amfi)-down from a gap of nearly 43,000 five years ago.

This momentum is reflected in overall asset expansion as well. Between March 2021 and March 2026, mutual fund AUM in B30 towns expa...