Listen to this article
The Rs.40 lakh crore mutual fund industry has added 17 lakh new investors in the first six month of FY 2023. As a result, the total investor count has increased from 3.43 crore in April 2022 to 3.60 crore in September 2022, shows the latest AMFI data.
The industry added a maximum of 7 lakh new investors in the month of May 2022.
However, the number is not even half of what the industry added in the corresponding period last year. In April-September 2022, the industry added 37 lakh new investors.
Experts attribute this decline to a host of reasons like no NFOs during the first three months of FY 2023, market volatility and discontinuation of pooled account.
DP Singh, ED and CMO, SBI Mutual Fund attributes this to not so good 1-year market performance and rising interest rates. He said, “While the industry has witnessed decline in the number of new investors, 17 lakh is still a good number for the industry. You can’t expect any industry to continue to grow at a same pace.”
Jimmy Patel, CEO, Quantum Mutual Fund said that unlike April-September 2021 when the industry launched several NFOs, there were no NFOs during April-June 2022. He also pointed out that the country is out of the pandemic fear. “Many investors have invested to secure their family during the pandemic. However, the pandemic has gone and normalcy has been restored. Many investors don’t have reason to invest.”
Saugata Chatterjee, Co-CBO, Nippon India Mutual Fund feels that many investors invested in sectoral funds and international funds last year. “This year, the industry saw this decline due to restriction on NFOs for the first few months and no fresh investments in international funds. Another reason is discontinuation of pooled account. It has affected online and large distributors to add new customers for quite some time.”
The monthly addition in new investors reduced to 3 lakh In April-September 2022 compared to 6 lakh in April-Sept 2021.
Currently, of the total 3.60 crore investors, the MF industry has 3.56 investors with unique PAN and 4.52 PEKRNs.
|
Months |
Total number of investors in 2022 (Fig in crore) |
Addition of investors (Fig in lakh) |
Total number of investors in 2021 (Fig in crore) |
Addition of investors (Fig in lakh) |
|
September |
3.6 |
0.03 |
2.67 |
0.09 |
|
August |
3.57 |
0.02 |
2.58 |
0.08 |
|
July |
3.55 |
0.02 |
2.5 |
0.11 |
|
June |
3.53 |
0.03 |
2.39 |
0.04 |
|
May |
3.5 |
0.07 |
2.35 |
0.05 |
|
April |
3.43 |
0 |
2.3 |
0 |
|
Total |
0.17 |
0.37 |
||
