New Delhi: With increase in digital access and growing awareness about mutual funds, asset management companies (AMCs) have added close to 70 lakh investor accounts in the first five months of the current fiscal, bringing the total to 13.65 crore. This came following an addition of 3.17 crore investor accounts in 2021-22 and 81 lakh accounts (or folios in mutual fund parlance) in 2020-21, data with the Association of Mutual Funds in India (Amfi) showed.
The sharp increase in mutual fund (MF) folio count implies that a lot of new investors are coming into the capital markets and are embracing mutual funds as their preferred vehicle for investing.
“Demonetisation led financialisation of household savings, further propelled by pandemic led lockdown, generational shift in risk appetite and saving pattern, systematic investment plans becoming way of life and a long term structurally bullish market are primary reason for increasingly larger number of investors investing in mutual funds,” said Akhil Chaturvedi, Chief Business Officer at
Asset Management.
Priti Rathi Gupta, Founder and MD, LXME, attributed the increase in folio numbers to a number of factors, including increased awareness among the people driven by literacy programs, advertising campaigns, easy-to-consume information, increased digitalisation and participation of women. Also, a mindset shift from traditional investment instruments to mutual funds helped in growing the investor accounts.
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