Mutual funds industry adds 8.1 million new investor accounts in Apr-May FY25

The mutual fund industry has seen a significant increase in investor accounts, with over 8.1 million new accounts added in the first two months of the current fiscal year (FY25). This growth is attributed to effective marketing strategies, celebrity endorsements, and the dedicated efforts of the distribution network. COO of Tradejini, Mr. Trivesh D, noted that shifting perceptions about fixed deposits, which now offer less competitive returns compared to mutual funds, along with rising income levels and greater access to financial markets, have also played a role in attracting new investors.

Looking ahead, the outlook for mutual fund accounts remains positive, bolstered by the ongoing bull market, strong risk management practices, continuous investor education, and consistent marketing efforts. Experts believe that as savers seek alternative ways to build wealth for long-term goals, the industry will continue to grow.

According to the Association of Mutual Funds in India (AMFI), the total number of mutual fund accounts reached 186 million by the end of May, up 4.6 % from 177.8 million at the end of March. This increase includes over 8.1 million new accounts, with 4.5 million added in May alone, compared to 3.611 million in April. The average monthly addition of accounts in 2023 was 2.23 million, making the recent figures more than double this average. Experts attribute this impressive growth to a significant number of new investors are using digital channels to enter the mutual fund market, with Gen-Y and Gen-Z investors driving the surge in accounts over the past few years.

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