Mutual Funds Folio: The mutual fund industry has added more than 81 lakh investors in the first two months (April and May) of the financial year 2024-25. This surge has come due to continuous marketing, celebrity endorsement and better performance of the distribution network. Due to the excellent performance of the stock market, investors are turning more towards mutual funds. Along with this, the perception of fixed deposits (FD) is also changing among the investors. FD is no longer able to give returns equal to mutual funds.
The number of mutual fund folios of the industry was 18.6 crores at the end of May
According to the data of the Association of Mutual Funds in India (AMFI), the number of mutual fund folios of the industry was 18.6 crores at the end of May. This figure is 4.6 percent or 81 lakh more than 17.78 crores by the end of March. It is the number given to individual investor accounts. According to AMFI, an investor can have multiple folios.
The mutual fund industry is expected to continue to grow like this
Trivesh D, COO of stock trading platform Tradejini, said that the prospects for the mutual fund market have strengthened. The ongoing boom in the stock market, better risk management, investor education and better marketing have connected more and more investors to the mutual fund industry. Such growth is expected to continue in the future as well. Investors are seeing long term growth in mutual funds. Abhishek Tiwari, CBO of PGIM India Mutual Fund, said that as India’s per capita income increases, investors will increase investment in mutual funds to beat inflation and create capital. This will increase the reach of mutual funds.
More number of youth among investors coming through digital channels
According to AMFI, most of the new investors are coming through digital channels. Among them, the number of young people is very high. Out of a total of 81 lakh folios, about 61 lakh have come in equity based mutual funds. Due to this, the number of such folios has increased to 12.89 crores. This number has increased due to the excellent performance of the stock market in the last few years. Apart from this, the growth of sectoral and thematic funds has also been excellent.
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