Equity euphoria boosts mutual fund investor additions by 70% in FY24

During the fiscal year 2024, mutual funds (MFs) saw a significant increase in new investors, up by 70% from the previous year, mainly due to the revival in the equity market. This rise added 6.8 million unique investors, taking the total MF subscriber count to 44.5 million. The recovery in equity market indices such as Nifty 50 and Sensex by over 25%, combined with the introduction of new fund options in popular categories, boosted investor confidence. The industry's assets under management (AUM) experienced a notable 35% growth, marking the second-highest increase in a fiscal year, while the number of folios reached a record high of 147.8 million, indicating the industry's healthy growth.

The heightened investor interest extended beyond MFs to encompass other equity investment avenues, indicative of a broader trend towards increased participation in capital markets. Active SIP accounts observed a significant rise, with net additions doubling from the previous year and over 82% of these accounts being dedicated to active equity schemes. While the growth in new investors is promising, the MF customer base of 44.5 million remains only around half of the latest tally of income tax return filings, signalling substantial room for further expansion. The fiscal year 2024 highlighted a notable shift towards an investment culture driven by market performance, advancing financial literacy, and the ongoing transition from saving to investing in the economy.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.