Sustained buoyancy in the equity market and a surge in equity fund launches brought in nearly 10 million new investors to the mutual fund fold in the last 12 months, shows data from the Association of Mutual Funds in India (Amfi).
The pace of investor addition has more than doubled compared to the previous 12 months.MFs had added only 4.4 million investors during October 2022-September 2023.
The total investor count stood at 50.1 million at the end of September 2024.
The investor count had crossed the 40 million mark in September 2023.
The unique investor count is tracked using the number of permanent account numbers (PANs) registered with MF schemes.
According to MF executives, a surge in new investors is underpinned by the growing appeal of equity investments.
While retail interest in equities has been steadily growing since the pandemic, the recent uptick in investor numbers is attributed to the strong market rally, the robust performance of equity schemes, and a wave of new fund offerings (NFOs) in popular categories, according to experts.
Benchmark indices the Nifty 50 and the Sensex had risen around 35 per cent in the one-year period ending September 30.
In comparison, the two indices had gone up only around 10 per cent in the previous 12 months.
Amid the buoyant equity market sentiment, fund houses have launched numerous equity NFOs recently, with activity especially picking up in the last five months.
MFs launched 28 active equity schemes from May to August, collectively raising Rs 58,612 crore.
NFOs, especially in the equity space, are known to boost investor additions owing to higher promotion and marketing activities.
The new investor additions have been around 1 million for four consecutive months starting June 2024.
'The MF industry is proud to reach a milestone of 50,122,609 (50 million) unique investors. This, along with folio count surpassing 210 million, underscores the efforts taken by the AMCs and distributors to spread financial awareness," said Venkat Chalasani, chief executive, Amfi.
'The Mutual Funds Sahi Hai campaign has helped build investor confidence, which is indicated by the growing appreciation for mutual funds as a preferred investment avenue." -- Abhishek Kumar/Business Standard