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There is good news for the Rs.48 lakh crore MF industry. The mutual fund industry has added over 27 lakh new investors in the first six month of FY 2024. As a result, the total investor count has increased from 3.76 crore in April 1, 2023 to 4.04 crore in September 30, 2023, shows the latest industry data available with Cafemutual.
Last year, the industry added over 17 lakh new investors during April-Sept 2022.
Currently, of the total 4.04 crore investors, the MF industry has over 4 crore investors with unique PAN and 3.80 lakh PEKRNs.
G Pradeepkumar, CEO, Union MF attributes this to market rally especially in mid cap and small cap segment. He said that both small and mid cap funds have performed exceptionally well and this has attracted many investors. He also pointed out that MFDs continuous efforts have also played a key role in adding new investors to the MF fold.
DP Singh, Deputy MD and Joint CEO, SBI Mutual Fund believes that the industry should add at least 10 lakh new investors every month. He said, “In a country of over 140 crore people, we have added just 27 lakh new investors. The industry could have done better. I am sure, with the joint efforts of AMCs and MFDs, the industry will be able to 1 million new customers every month in times to come.”
Here is the complete report card of the MF industry over the last six months:
- In just six months, the AUM of the MF industry went up by 20% to reach Rs.48 lakh crore in Sept 2023
- The industry added over 1.14 crore folios during April-Sept 2023. Over 99% of them are from individual investors
- Individual investors now account for 60% of the total industry AUM
- Of the total individual AUM of Rs.28 lakh crore as on Sept 2023, over Rs.22 lakh crore or 80% has come from regular plans
- The industry saw gross SIP inflows of Rs.90,000 crore in April-Sept 2023
- Over 10,000 new individual distributors entered the MF industry while 12,000 existing individual MFDs have renewed their ARN
- Total number of individual MFDs stands at 1.32 lakh as on Sept 2023
- However, net SIPs inflows are still less than 50% of the gross SIP inflows. SIP net flows = Gross SIP inflows - outflows from SIP account through redemption and switches irrespective of when it was invested
