Investors trend towards mutual funds, 3.17 crore new accounts opened in one year
3.17 crore new accounts opened in a financial year
According to the data of Amfi, the number of accounts of 43 mutual fund companies increased to 12.95 crore in March 2022 as compared to 9.78 crore in March, 2021. In this way, 3.17 crore new accounts have been opened in a single financial year.
mutual fund ,Mutual FundIncreasing awareness aboutstock marketAsset Management Company (AMC) was able to add 3.17 crore investor accounts in the financial year 2021-22 due to the sharp jump. Association of Mutual Funds in India (AmfiAs per the data received from In the year 2020-21, 81 lakh new accounts were added. The impact of market conditions, geo-political outlook, rising inflation and increasing awareness among people can be seen on the mutual fund industry.
Preet Rathi Gupta, founder of LXME, a financial platform for women, said that the rapid rate of new investors joining mutual fund schemes is likely to continue in the current financial year as well. He said that this will increase the trend towards mutual funds as a means of investment other than fixed deposits (FD) and savings accounts.
However, Swapnil Bhaskar, head of strategy, banking technology firm Niyo, believes that if retail investors are affected by the market volatility due to changes in interest rates, then the number of new accounts of mutual funds may come down slightly.
3.17 crore new accounts opened in a financial year
According to the data of Amfi, the number of accounts of 43 mutual fund companies increased to 12.95 crore in March 2022 as compared to 9.78 crore in March, 2021. In this way, 3.17 crore new accounts have been opened in a single financial year. The industry crossed a milestone of 100 million folios in May 2021. The number of folios under equity, hybrid and solution oriented schemes, in which maximum exposure is from the retail segment, stood at around 10.34 crore as of March 2022.
Folios are the number of individual investor accounts. An investor can have multiple folios. There has been a steady increase in the folio numbers in mutual funds over the years. This added 73 lakhs in 2019-20, 1.13 crores in 2018-19, 1.6 crores in 2017-18, over 67 lakhs in 2016-17 and 59 lakhs in 2015-16.
Saugata Chatterjee, Chief Business Officer, Nippon India Mutual Fund said, “With asset management companies increasing their branch network and distribution touchpoints across the country, the industry has been able to bring in new investors.
Jimmy Patel, MD & CEO, Quantum AMC said, “The volatility in the market and the panic across the world has not deterred Indian investors from pumping funds into the market through mutual funds. This reflects the trust and confidence of investors in the Indian growth story.
