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The first quarter of FY 2024 was not so good for the MF industry. AMFI data shows that number of new investors investing in mutual funds has declined drastically in April-June 2023.
The industry saw addition of 6.64 lakh new investors last quarter as against 16.34 lakh investors in the corresponding year of 2022, a massive decline of 60%.
Let us look at this table to know more.
|
2023 |
2022 |
|||
|
Month |
Total Investor Count |
New Investors |
Total Investor Count |
New Investors |
|
Mar |
3,76,83,499 |
- |
3,36,65,090 |
- |
|
Apr |
3,79,04,006 |
2,20,507 |
3,43,42,450 |
6,77,360 |
|
May |
3,82,17,696 |
3,13,690 |
3,49,50,686 |
6,08,236 |
|
Jun |
3,83,47,492 |
1,29,796 |
3,52,98,940 |
3,48,254 |
|
Total |
6,63,993 |
16,33,850 |
||
VR Aiyappan of Mera Funds points out that all time high markets and pause in B30 incentives has affected the entry of new investors. He said, “As the markets are soaring high, a particular group of investors is sceptical to participate fearing market correction. Another probable reason could be the pause of B-30 incentives due to which MFDs from small cities focused on their current clients more instead of on boarding new investors.”
A Mumbai MFD feels that the new KYC norms halted this momentum. He said, “Investors now need to submit KYC documents with a wet signature. Scanned copies are no longer valid in mutual funds. Also, if someone submits Aadhaar, the photocopy has to be machine readable format.”
Overall, the MF industry has over 3.83 crore investors as on June 30, 2023.
