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According to the data released in the Economic Survey, the Indian capital market has around 17 crore unique investors (including mutual fund investors and direct investors) in December 2024.
With 5.20 crore unique investors in mutual funds, the data indicates that 30.6% of the total capital market investors have invested in mutual funds.
Highlighting the significant growth and the doubling of the MF AUM in the industry in the last three years, the Survey reveals some interesting developments in the mutual fund industry over the past few years. Here are the key developments in the MF industry:
- The share of retail investors in the total AUM of the MF industry stands at Rs. 18.60 lakh crore
- There are approximately 10 crore SIP accounts with aggregate inflows of Rs. 10.90 lakh crore since inception
- The size of the average monthly SIP inflow in mutual funds has more than doubled to Rs. 23,000 crore in FY25 compared to Rs. 10,000 crore in FY22
- The ownership of the NSE-listed companies through mutual funds has witnessed a significant growth to reach at 9.5% in September 2024 from 8.7% in March 2024
- The share of individual investors in the NSE-listed companies (direct investors plus individual investors via mutual funds) has reached to 17.6%, which is same as the share of FPI investors
A Balasubramanian, CEO, Aditya Birla MF said that the highlighted developments in the Economic Survey are a good sign for the Indian mutual fund industry. Given the growth rate of India, the financial savings of the individuals are growing and it will continue to help the MF industry grow in the coming years, he added.
Ganesh Mohan, CEO, Bajaj Finserv AMC said that while direct equity investing has grown, mutual funds remain the most efficient vehicle for wealth creation through professional management and diversification.
Mohan said that MFs are instrumental in wealth accumulation and risk management. “As an industry, we need to spread this awareness and convert more of these equity investors into disciplined, long-term MF participants. In a country with over 140 crore people and rising disposable incomes, retail savings are still largely concentrated in traditional assets like fixed deposits and real estate.”
