look news india
The growth in demat accounts and mutual fund (MF) investment figures indicates that retail investors' confidence in the market remains intact despite the increased market volatility due to the recent election uncertainty. In the month of May alone, investors opened a net 36 lakh demat accounts.
With the new additions, the total number of demat accounts has reached 15.8 crores. The MF data released on Monday also showed that there has been a record increase in net inflows in equity schemes. Along with this, the figure of Systematic Investment Plan (SIP) investment has also reached a record level. The figure of MF equity scheme has reached a new level of Rs 34,697 crore and the figure of SIP has reached Rs 20,904 crore. Direct and MF investment in these two sectors reduced the impact of the sale of Rs 22,159 crore by foreign investors (FPIs) in May. Along with this, the increase in new demat accounts shows that people's confidence in India's development has increased.
Last month alone, equities worth Rs 46,666 crore were bought by MFs. Along with this, the increased number of demat accounts indicates that more and more Indian households are investing directly in equities. 1.88 crore new demat accounts have been opened so far in 2024. Notably, more and more retail investors are getting attracted to direct investment as the stock market has been earning strong returns in recent times. The number of demat accounts has increased due to the ease of opening an account due to digitization and increasing awareness towards investing in the stock market. On a year-to-date basis, the Sensex has gained six per cent and the Nifty 7.1 per cent. When it comes to the Nifty Mid-Cap and Nifty Small-Cap indices, each has gained 16 per cent.
