MF industry adds close to 1 crore investors in FY 2025

An analysis of industry data done by Cafemutual shows that the MF industry has added close to 1 crore in FY 2025. The MF industry has added 96.60 lakh new investors in the last one year.

The total number of investors in mutual funds has increased from 4.45 crore in March 2024 to 5.43 crore in March 2025, a growth of 22% in just a year.

Let us look at the table to know more:

In terms of unique investors with PAN, the industry added 96.80 lakh investors in FY 2025. However, the number of PAN-exempt investors (PEKRN) declined from 3.61 lakh in March 2024 to 3.41 lakh in March 2025, primarily due to new KYC norms.

Second-highest investor growth in history

This is the second-largest annual addition of investors in the history of Indian mutual funds. The highest was during the COVID-19 year (FY 2021), when 1.09 crore new investors joined the MF fold.

New investor additions over the years

Kailash Kulkarni, CEO, HSBC Mutual Fund attributes this to multiple factors. He said that mutual funds have become a household name among investors now thanks to increasing awareness. He said that many people have moved from real estate due to liquidity issues to mutual funds in the last one year. 

Kulkarni also pointed out that technology has made it easier for new investors to invest in mutual funds. Now, everything happens online from account opening to KYC, he added.

Also, healthy returns from mutual funds and convenience of investing systematically through SIPs have attracted many investors, said Kulkarni.

Kulkarni emphasized the need to double the investor base to 10 crore over the next 2–3 years. “The industry must focus on education, risk awareness, and setting the right expectations,” he added.

Navneet Munot, MD and CEO, HDFC Mutual Fund and Chairman, AMFI said that the addition of close to 1 crore new investors last year reflects growing trust in mutual funds as a tool for financial empowerment. “It marks a shift toward disciplined, long-term investing. It reflects the success of our collective efforts—by policymakers, AMFI, the industry, and our distribution partners. We still have a long way to go in terms of penetration. As an industry, we remain committed to inclusion, education, empowerment and building wealth for every Indian household,” he added.

Nilesh Shah, MD and CEO, Kotak Mutual Fund said that MF Industry is a like bamboo tree. He said, “We have planted the right seed (build trust through years of performance, products and service) in the right soil (regulatory environment), watered it regularly (keep communicating and servicing clients) and cut out the weeds (keeping expectations realistic). No wonder the tree is growing fast now. It is result of the efforts of the past.”