70 Lakh New Mutual Fund Investors Added In 150 Days! 13.6 Crore Indians Are Now Investing In MFs
In the period of first five months of the current fiscal, the asset management companies (AMCs) have added close to 70 lakh investor accounts. This has brought the total to 13.65 crore.
This can be attributed to the increase in digital access and growing awareness about mutual funds.
Increased Mutual Funds Investor Accounts
Data with the Association of Mutual Funds in India (Amfi) showed that in 2021-22, there was an addition of 3.17 crore investor accounts whereas the same was 81 lakh accounts (or folios in mutual fund parlance) in 2020-21.
This spike in the number reflects that a lot of new investors are coming into the capital markets and are embracing mutual funds as their preferred vehicle for investing.
Akhil Chaturvedi, Chief Business Officer at Motilal Oswal Asset Management said that “Demonetisation led financialisation of household savings, further propelled by pandemic led lockdown, generational shift in risk appetite and saving pattern, systematic investment plans becoming way of life and a long term structurally bullish market are primary reason for increasingly larger number of investors investing in mutual funds”.
Number of Factors Caused the Surge in MF Popularity
As per the Founder and MD of LXME, Priti Rathi Gupta, the increased number can be attributed to a number of factors, including increased awareness among the people driven by literacy programs, advertising campaigns, easy-to-consume information, increased digitalisation and participation of women.
Also, a mind-set shift from traditional investment instruments to mutual funds helped in growing the investor accounts.
As per the data, as compared to 12.95 crore in March 2022, the number of folios with 43 fund houses rose to an all-time high of 13.65 crore in August 2022. This translates into a record gain of 70 lakh during the period.
As per Himanshu Srivastava, Associate Director – Manager Research, Morningstar India that there has been a sudden surge in the Indian equity markets due to which there is an investor interest in the same.
Also, in such trying times, the Indian markets have displayed better resilience than most of the other global markets, and that has not gone unnoticed.