Historic Milestone: Mutual Fund Industry Triumphs with Over 50 Million Investors in September!
The mutual fund (MF) industry in India is on track to surpass 50 million unique investors by September, with net additions exceeding 10 million in just 12 months, fueled by a buoyant equity market and a surge in new fund offerings (NFOs). This rapid growth contrasts sharply with previous periods, where 10 million investors were added over 21 months and expanding from 20 million to 40 million took over 26 months.
The unique investor count, monitored through permanent account numbers registered with MF schemes, indicates unprecedented interest bolstered by the appeal of equity investments. D P Singh, Deputy Managing Director and Joint CEO at SBI MF, highlights that investors are increasingly turning to market-linked investments to capitalize on India’s growth story. Similarly, Swarup Anand Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers (India), predicts the investor count could double to 100 million within three to four years, with a target of hitting 100 million by 2030 and surpassing Rs 100 trillion in assets under management.
Experts attribute the surge in investor numbers to a strong market rally, robust performance of equity schemes, and an influx of NFOs in popular categories. The benchmark indices, the Nifty 50 and S&P BSE Sensex, have climbed roughly 30 percent over the past year. During this period, MF houses launched 21 active equity schemes from May to August, raising a combined Rs 48,735 crore.
Groww, a significant direct plan distributor, reported a threefold increase in its SIP investor base over the past two years, with substantial growth in both metro and non-metro locations. The majority of investments on its platform come from outside the top six cities, with Maharashtra, Uttar Pradesh, West Bengal, Bihar, Karnataka, and Delhi leading in growth.
D P Singh cites positive economic sentiment, advancements in financial technology, and industry awareness campaigns as key drivers of this growth. The popularity of systematic investment plans (SIPs) is evident in the data, with active SIP accounts nearing 100 million. In the first eight months of 2024, MFs added 19.7 million SIP accounts, surpassing the 15.1 million added in the entirety of 2023.
Original Story https://www.business-standard.com/markets/mutual-fund/mutual-fund-industry-to-cross-50-million-investor-mark-in-september-124092301063_1.html
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