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  • MF News Less than 1.5% of India’s population invests in MFs

    Less than 1.5% of India’s population invests in MFs

    The mutual fund industry has two crore unique investors.
    Team Cafemutual Apr 10, 2018

    AMFI’s latest data shows that less than 1.5% of Indians invest in mutual funds.

    Of the total 134 crore people in the country, the mutual fund industry has 2 crore unique PAN indicating that the industry has 2 crore investors. Currently, there are 29 crore PAN card holders in India. Going by these numbers, you can say that the penetration of the mutual fund industry in India is close to 7% (based on the number of PAN card holders, which is mandatory to invest in mutual funds).

    These 2 crore investors have 6.60 crore folios. This means, each investor holds at least 3 folios in mutual funds.

    However, the number of mutual fund investors is much lower than number of investors in banks and insurance. While 75 crore Indians have bank accounts, 35 crore people have insurance policies.

    AMFI aims to get 2% of India’s population to invest in mutual funds. In a press conference held recently to launch the second phase of Mutual Fund Sahi Hai campaign, A. Balasubramanian, Chairman AMFI and CEO of Aditya Birla Sun Life Mutual Fund said that AMFI aims to add 50 lakh new investors in the next one year, on the back of industry focus, guided by the collective wisdom of industry players, to reach out additionally to investors present in beyond the top 30 cities. “The Mutual Funds Sahi Hai campaign which is a unique collaborative initiative of the industry would help to get 2% of India's population to invest in MF in the next one year. Currently, less than 1.5% of the country's population invests in mutual funds.”

    Balasubramanian added, “We continue to advocate mutual fund investors to have patience and stay invested, add debt and hybrid funds to their portfolio and allocate more through SIPs, especially in periods of market volatility and aim to benefit over the longer term.”

    Recently, AMFI launched a campaign to urge citizens to take a pledge to invest one day’s income in mutual funds every month.

    Snippets from the AMFI presentation

    • Population of India: 1.34 billion+
    • No. of people having Bank Account: 750 million+
    • No. of people having Insurance: 350 million+
    • No. of people having Permanent Account Number: 290 million+
    • No. of Mutual Fund accounts: 66 million
    • No. of unique Mutual Fund investors: 20 million
    • Less than 1.5% of India’s population invests in MFs
    Have a query or a doubt?
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    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

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    4 Comments
    Avinash chandra · 6 years ago `
    Mutual funds industry is growing even banks are targeting MF
    Kishore Kumar Verma · 6 years ago `
    No doubt, there is a need to hold frequent educational programs in schools, colleges, including professional institutes like medical and engineering colleges, Bar Councils etc. Unforseen events like PNB and other banks scams, changes in LTCG taxation that bring down valuations, do lower the faith of those MF investors who have little knowledge about them. So education, education, education is the key
    Nitika · 5 years ago `
    Just one query, how come number of bank account holders are more than number of pan cards? is it not mandatory to have a pan card for opening a bank account?
    Ashish · 5 years ago
    Hi Nitika, Pan card is not mandatory for opening bank accounts, Bank account could be open through form 60 declaration in case not having Pan card.
    Reply
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