The number of mutual fund investors has crossed 40 million, SIP flows scaled a new high
- IBEF
- October 12, 2023
In September, the number of unique investors in mutual funds (MFs) surpassed 40 million, with 10 million new ones added in the previous 21 months. Approximately 57% of all income tax filings this year and 6.5% of all PAN card issuances are made up of investors in mutual funds.
The unique investor count is the total PAN registered with the MF industry.
The MF industry reached the milestone in the midst of a surge in gross systematic investment plan (SIP) inflows. For the first time, the industry received more than Rs. 16,000 crore (US$ 1.92 billion) through the SIP route in September. The majority of net inflows into active equity schemes come from regular investors; however, these inflows decreased 30% month over month (MoM) to Rs. 14,090 crore (US$ 1.69 billion). Profit booking in small- and mid-cap funds may have contributed to the decline in net inflows. In September, redemptions from the two fund categories increased 42% month-over-month to Rs. 7,430 crore )(US$ 892.5 million).
September saw higher inflows than the average inflows for FY24. Industry experts think that MF investors' resiliency is demonstrated by the robust inflows despite the market's risk-off attitude and record-high index levels.
Compared to the previous months, the total amount of net flows in the small- and mid-cap categories decreased. Despite this, they continued to rank among the top recipients of net inflows in September, with the small-cap category earning Rs. 2,678.4 crore (US$ 328.7 million) and the midcap category receiving Rs. 2,000.8 crore (US$ 240.2 million), according to Ms. Melvyn Santarita, Analyst-Manager Research, Morningstar Investment Adviser India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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