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The mutual fund industry has added 1.09 crore unique investors during FY 21-22, shows AMFI data. This accounts for a 48% rise in the total number of investors in a year.
The total count has increased from 2.28 crore to 3.37 crore which comprises 3.32 crore unique PANs and 4.65 lakh unique PERN (PAN Exempt KYC Reference No) registered with mutual funds.
Hemant Rustagi, CEO, Wiseinvest feels that that good performance of mutual funds is the primary reason behind the rise in the total number of investors. He said, “Retail investors’ interest has increased and more and more individuals are taking the SIP route to invest.”
Ajit Menon, CEO, PGIM India Mutual Fund believes that working from home gave individuals time and exposure to explore mutual funds. He said, “The overall investment sentiment was pro-equity. Traditional saving products at the same time were unattractive and falling out of flavour for many.”
Deepak Mehta, Head Sales Management, UTI Mutual Fund attributes this rising interest of investors in mutual funds to awareness campaigns and the ease of investment. “Over the last few years, the industry has done a great job at popularizing mutual funds and concepts like SIP. AMFI’s ‘Mutual fund sahi hai’ campaign has also helped. Additionally, the ease of investing in mutual funds has grown significantly. A lot of new-age companies have attracted many investors including millennials. This has also helped add new investors.”
Shifali Satsangee, Founder and CEO of Funds Ve'daa said that more people are aware of the benefits of mutual funds now. She further added that the relative attractiveness of equity as an asset class and FOMO (fear of missing out) has also contributed to the increase in investor count.
