INSUBCONTINENT EXCLUSIVE:
Illustration: Binay Sinha3 min read Last Updated : Sep 23 2024 | 7:54 PM IST
The mutual fund (MF) investor base is set to surpass the
50-million unique investor milestone in September, with net additions expected to exceed 10 million in just 12 months, driven by sustained
buoyancy in the equity market and a surge in new fund offerings (NFOs).
Previously, it took the industry 21 months to add 10 million
investors, while growing from 20 million to 40 million took over 26 months.
The unique investor count is tracked using the number of
permanent account numbers registered with MF schemes.
According to MF executives, the surge in new investors is underpinned by the
expect a strong influx of investors into the capital markets
Managers (India).
The two industry leaders believe the growing interest in equities and systematic investment plans (SIPs) will likely
double the investor count to 100 million in the next three to four years
The industry has set a target of 100 million investors by 2030, aiming to exceed Rs 100 trillion in total assets under management.
While
retail interest in equities has been steadily growing since the pandemic, the recent uptick in investor numbers is attributed to the strong
market rally, the robust performance of equity schemes, and a wave of NFOs in popular categories, according to experts.
The benchmark
indices, the National Stock Exchange Nifty 50 and the S&P BSE Sensex, have risen around 30 per cent over the past year
During this period, fund houses have launched numerous equity NFOs, with activity especially picking up in the last four months
MFs launched 21 active equity schemes from May to August, collectively raising Rs 48,735 crore.
Groww, the largest direct plan
investments on its platform come from beyond the top six cities.
Singh pointed to other factors contributing to the growing investor
MFs emerging as a prominent equity investment option
The growing popularity of SIPs is reflected in the data.
The number of active SIP accounts is nearing the 100 million milestone
In the first eight months of the current calendar year (CY), MFs added 19.7 million accounts, compared to 15.1 million for the entirety of
CY 2023.First Published: Sep 23 2024 | 7:40 PMIST
