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There is good news for the Rs.68 lakh crore MF industry. The mutual fund industry has added over 55.34 lakh new investors in the first six months of FY 2025.
As a result, the total investor count has increased from 4.46 crore in April 1, 2024 to 5.01 crore in September 30, 2024, shows the latest industry data available with Cafemutual.
The industry added over 27 lakh new investors during April-Sept 2023 and 17 lakh investors in April-Sept 2022.
Currently, of the total 5.01 crore investors, the MF industry has over 4.98 crore investors with unique PAN and 3.50 lakh PAN exempted investors.
A Balasubramanian, MD and CEO, Aditya Birla Sun Life Mutual Fund attributed this growth to the increased confidence of investors in mutual funds. He said, “Mutual funds have become the new norm for investors today. This trend will continue considering the under penetration of mutual funds.”
Navneet Munot, MD and CEO, HDFC Mutual Fund and Chairman of AMFI said that the combination of several factors like good track record of MF schemes, transparency in product, technological advancement to support ease of investment and increasing investor awareness have contributed to the increase in number of new investors. He said that it is heartening to see that the bulk of investment of new investors has come through the SIP route across all client segments like millennials and women.
Seconding Munot’s view, VN Chalasani, Chief Executive, AMFI said that the MF industry has increased its focus on underpenetrated areas like B30 cities to run awareness campaigns. “Over the last few months, AMFI and AMCs have covered a large number of cities and investors through on ground activities.”
Chalasani also attributed this increase in the number of new investors to strong macro-economic conditions and healthy performance of equity markets.
A CEO requesting anonymity said that the fintech platforms have added a large number of investors in the recent past. He told Cafemutual that these platforms now account for 50% of the new investor addition, which was just 10% five years ago.
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 has gone up by 24% to reach Rs.68 lakh crore in Sept 30, 2024 from Rs.55 lakh crore in March 30, 2024
- The industry has added over 3.26 crore folios to reach a folio count of 21.05 crore during April-Sept 2024. Over 99% of them are from individual investors
- Individual investors now account for 62% of the total industry AUM
- Of the total individual AUM of Rs.43 lakh crore as on Sept 2023, over Rs.33 lakh crore or 77% has come from regular plans
- The industry has witnessed gross SIP inflows of Rs.1.34 lakh crore in April-Sept 2024
- Over 14,000 new individual distributors have entered the MF industry while 23,200 existing individual MFDs renewed their ARN
- Total number of individual MFDs stands at 1.68 lakh as on Sept 2024
- 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
