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The industry data reveals that the Rs.53 lakh crore mutual fund industry has 4.46 crore investors in March 2024.
An analysis shows that the industry has added 70 lakh investors in the last one year and 2.10 crore in the last five years.
Let us look at the table to know more.
|
S.no |
Year |
Investor count |
Number of investors added YOY |
Increase YOY |
|
1 |
Mar-24 |
4,45,88,450 |
69,04,951 |
18% |
|
2 |
Mar-23 |
3,76,83,499 |
40,18,409 |
12% |
|
3 |
Mar-22 |
3,36,65,090 |
1,09,03,909 |
48% |
|
4 |
Mar-21 |
2,27,61,181 |
19,61,995 |
9% |
|
5 |
Mar-20 |
2,07,99,186 |
- |
- |
Experts attribute this to increased awareness about mutual funds and ease of investing.
Celso Fernandes of Nave Marg Financial Consultant, Margao, Goa
Media has played a major role in popularising mutual funds among investors. People have realized that bank FDs aren’t lucrative enough and hence, they are opting for mutual funds. Moreover, awareness programs held by distributors and AMCs all over the country have contributed in a big way to bring investors to mutual funds.
DP Singh, Deputy MD and Joint CEO, SBI MF
The deeper penetration of mutual funds is the reason behind new investors opting for mutual funds.
The number of investors in the mutual fund industry has more potential to grow with each year, even addition of 70 lakh investors in the past year is sub-optimal for the MF industry. With the population of 140 crore, we should add at least 6-7% of the total population as investors.
Hari Kamat, HGK Investment Avenue, Goa
Mutual funds have created many happy clients over the last few years due to stellar returns. In fact, many people have moved from bank FDs to mutual funds to earn better than inflation returns.
Hitesh Thakkar, Acting CEO, ITI Mutual Fund
Retail investors have been drawn by the ease of technology and cost effectiveness of mutual funds.
The industry data shows that majority of new clients are young. Many of these investors prefer online medium to invest in mutual funds and today, there are lot of online distributors who facilitate digital transaction in mutual funds along with easy eKYC process.
Kailash Kulkarni, CEO, HSBC MF
Mutual funds have become an accepted category of investment. People have realized that SIP is the way of investment and the good returns in the past 3-4 years have had positive impact on people.
The good feedback of existing people in the mutual funds has prompted more people to join the mutual funds. In my experience, people don’t have to sell mutual funds anymore; people are themselves asking for it.
