The mutual fund industry has experienced a notable rise in investor accounts, with over 8.1 million new accounts opened in the first two months of the current fiscal year (FY25). This surge is credited to successful marketing strategies, celebrity endorsements, and the dedicated efforts of the distribution network. According to Mr. Trivesh D, COO of Tradejini, changing perceptions about fixed deposits, which now offer less attractive returns compared to mutual funds, along with rising income levels and improved access to financial markets, have also contributed to attracting new investors.
Looking forward, the outlook for mutual fund accounts remains positive, supported by the ongoing bull market, robust risk management practices, continuous investor education, and sustained marketing efforts. Experts believe the industry will continue to expand as savers seek alternative ways to build wealth for long-term goals.
The Association of Mutual Funds in India (AMFI) reports that the total number of mutual fund accounts reached 186 million by the end of May, a 4.6% increase from 177.8 million at the end of March. This growth 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 influx of new investors 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.