81 lakh investor accounts added in Mutual Funds in April and May

The mutual fund industry has added over 81 lakh investors’ accounts in the first two months of the current fiscal (FY25), mainly due to consistent marketing efforts, celebrity endorsements and dedicated work of the distribution network. Additionally, changing perceptions about fixed deposits, which no longer offer competitive returns compared to mutual funds, and the rise in income levels and accessibility to financial markets have also contributed to the rise in new investors, Trivesh D, COO of stock trading platform Tradejini, said.

Going ahead, the outlook for mutual fund folios remains strong, supported by the ongoing bull run in the stock market, solid risk management practices, continuous investor education, and consistent marketing efforts, he added.

Moreover, the industry will continue to see decent growth as savers increasingly look for alternative avenues to create wealth for their long-term goals, experts said.

“As India’s per capita income grows, investors will look to save money in asset classes, which have the potential to beat inflation and create wealth. As the penetration of mutual funds increases, this will translate into a higher folio base at the industry level,” Abhishek Tiwari, CBO, PGIM India Mutual Fund, said.

According to the latest data with the Association of Mutual Funds in India (AMFI), mutual fund folios of the industry stood at 18.6 crore in May-end, a surge of 4.6 per cent from 17.78 crore registered at the end of March.