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As many as 1.14 crore new investors started investing in mutual funds over the last one year, shows AMFI data. With this, the industry witnessed 48% increase in terms of number of new MF investors.
The data shows that over 16 lakh new investors joined the MF industry last quarter i.e. April-June 2022. Overall, the total number of investors increased from 3.37 crore as on Mar 22 to 3.53 crore as on Jun 22.
Experts attribute this to the rising mutual fund awareness through AMFI campaigns, media channels and IAPs.
G Pradeepkumar, CEO, Union MF feels that awareness of mutual funds has grown substantially over the past few years. He said, “The popularity of mutual funds is increasing owing to the industry’s collective efforts to educate investors. Also, many MFDs have promoted SIP as a reasonably safe, convenient and transparent way to create long term wealth, which has undoubtedly generated lot of interest among investors.”
Jimmy Patel, MD and CEO, Quantum MF also attributes the rise in investors to the healthy performance of many mutual schemes. He said, “The increase is also partially due to emotional trauma that many went through during the pandemic. They have now realised the importance of having investments.”
Mumbai MFD Viral Bhatt of Money Mantra said that the message of return generation through discipline and patience has reached out to investors well. They now prefer to start their investment journey through mutual funds over direct equity, he added.
Mumbai RIA Vivek Rege of VR Wealth Advisors points out that many existing MF investor have brought their friends and family members to the MF industry. “In the last one year, we have seen many existing investors giving referrals after having good experience from mutual funds,” he said.
