The mutual fund industry is witnessing a shift as new players make inroads into smaller cities. As per ICRA Analytics, the market share of the top-5 states in mutual fund investments has slightly decreased. This can be attributed to the growing popularity of mutual funds in smaller cities, where more investors are participating in the market. With the availability of digital platforms and increased awareness about investment options, investors from smaller cities are now exploring mutual funds as a viable investment avenue. As a result, these cities are becoming significant contributors to the overall growth of the mutual fund industry. One of the key factors driving this trend is the ease of access to mutual fund investments through online platforms and mobile applications. This has made it convenient for investors in smaller cities to enter the market and diversify their portfolios. Additionally, mutual fund companies and distributors are also focusing their efforts on educating investors about the benefits of mutual funds and providing them with easy investment options. This has further facilitated the penetration of mutual funds in smaller cities. The report highlights that while the top-5 states still account for a significant portion of the mutual fund market, their dominance is gradually being challenged. As new players continue to expand their operations, smaller cities are emerging as important hubs for mutual fund investments. This shift indicates a wider reach of mutual funds and democratization of investment opportunities across the country. With the government’s focus on financial inclusion and the growth potential of smaller cities, the mutual fund industry is expected to witness further expansion in these regions. The increasing number of investors from smaller cities is not only beneficial for the industry but also contributes to the overall economic development of these regions.