Mutual Fund Investors Surge to Over 50 Million. Gaining 10 Million New Investors in Just One Year
Data from Amfi shows that the continuous strength in the stock market and a sharp increase in the creation of equity funds attracted almost 10 million new investors to the mutual fund sector in the previous year.
Investor growth rate has more than doubled in comparison to the last 12 months. MFs had brought in a total of 4.4 million new investors between October 2022 and September 2023.
By the end of September 2024, the total number of investors was 50.1 million, exceeding the 40 million milestone achieved in September 2023.
The investor count is monitored by keeping track of the amount of permanent account numbers (PANs) linked to mutual fund schemes.
MF executives believe that the increase in new investors is driven by the rising popularity of equity investments.
Mutual Fund Investors Surge to Over 50 Million. Gaining 10 Million New Investors in Just One Year
The Nifty 50 and BSE Sensex indices saw a growth of approximately 35% in the twelve-month period ending on September 30. By contrast, both indices had risen by just approximately 10 percent in the prior year.
With a positive mood in the stock market, fund management companies have introduced many new equity NFOs lately, especially showing increased activity in the past five months. During the period of May to August, MFs introduced a total of 28 active equity schemes, resulting in a combined fundraising amount of Rs 58,612 crore.
NFOs, particularly in the stock market sector, are recognized for driving increases in investor numbers as a result of increased advertising and promotional efforts.
An average of 1 million new investors have been added each month for four months straight, beginning in June 2024.
“The MF industry is happy to achieve the milestone of 50,122,609 distinct investors. This, coupled with a folio count exceeding 21 crore, highlights the commitment of asset management companies (AMCs) and distributors to promote financial literacy. Venkat Chalasani, the chief executive of Amfi, stated that the ‘Mutual Funds Sahi Hai’ campaign has boosted investor confidence, leading to an increased preference for mutual funds as an investment option.
The promotion of systematic investment plans (SIPs) by the industry has played a crucial role in making MFs a popular choice for equity investments. The data clearly shows the increasing popularity of SIPs.
The amount of current SIP accounts is close to reaching 100 million. During the first nine months of the current calendar year, mutual funds gained 22.3 million accounts, exceeding the 15.1 million added throughout the entire calendar year 2023.
The sector aims to surpass Rs 100 trillion in total assets under management by 2030 by attracting 100 million investors.
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