The mutual fund (MF) industry has experienced remarkable growth, with the number of new investors quadrupling. An analysis of industry data shows that the industry added 24 lakhs new investors in April-June 2024, a significant increase from the 6 lakhs added in the same period in 2023. As a result, the total number of MF investors has grown from 4.45 crores in March 31, 2024 to 4.69 crores in June 30, 2024.
Sandeep Bagla, CEO of Trust Mutual Fund, attributes this surge to the stellar performance of equity funds. He also notes that individual MFDs and fintech companies have played a crucial role in onboarding a large number of new investors during the last three months.
Pune-based MFD Sandeep Bhushetty believes that the industry’s recent focus on new fund offerings (NFOs) has contributed significantly to this trend. He explains that MFDs have actively encouraged many new investors, particularly those new to mutual funds, to participate in these NFOs, which has significantly increased investor interest and engagement in the mutual fund space.
Furthermore, Swarup Mohanty, CEO of Mirae Asset India Mutual Fund, highlights the growing popularity of Systematic Investment Plans (SIPs) as another key factor driving this growth. He suggests that the ease of investment through digitalization has further enhanced the appeal of SIPs, and the impressive numbers are particularly encouraging considering the challenges associated with the KYC process.
