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Industry data shows that 37.16 lakh new investors joined the MF industry during April 2023 to November 2023, around 38% higher than the new investor addition during the corresponding period of FY 2022-23. The industry added close to 27 new investors between April and Nov 2022.
Attributing the rising count to short term return data, Siliguri MFD Prabin Agarwal said, “As against the previous year, FY 2022-23 showcased better short-term returns, which encouraged many to start investing in mutual funds.”
He continued, “The current digital ecosystem makes it easier for MFDs and others to reach out to newer pockets and onboard investors. Likewise, investors enjoy ease of investment, thereby increasing the number under MF fold.”
Talking about the rising awareness, Pune MFD Sandeep Bhushetty said, “Investors have come to realize the limitation of traditional instruments to generate inflation-adjusted returns. Also, owing to the efforts of AMFI and other industry participants, there is a rising awareness of the benefits of mutual funds and young professionals now look at them as a worthwhile proposition to generate wealth and achieve financial aspirations over the long term.”
Seemant Shukla, CBO, JM Financial MF said, “This positive trend can be attributed in part to the market sentiment, instilling optimism among individuals about India and the Indian capital market.”
He added, “The awareness, campaigns and branding initiatives for mutual funds are extending to remote areas and in addition to these efforts, the contributions of MFDs and advisors play a crucial role in engaging and nurturing new cohorts of investors.”
