look news india
Ahmedabad: The mutual fund industry has recorded strong growth in the number of new investors in January. The continued uptick in the market and additional efforts by the industry to reach out to new investors through new fund launches by fund houses have been successful. Funds added nearly 1 million new investors in January 2024, up 50 percent from December 2023. The last time 10 lakh investors joined the mutual fund was in February 2022.
Two things may be responsible for the increase in the number of investors during January. Firstly, Systematic Plan A (SIP) has become the preferred option for Indians in the capital market. This sustained monthly growth tells an interesting story in itself. Secondly, New Fund Offering (NFO) has also played an important role in attracting new investors. A large number of NFOs came in January.
Mutual funds launched 17 new schemes in January. They collectively spent Rs. Investment worth Rs 6,430 crore was attracted. The number of new schemes in December was 14. The number of investors in the equity category has also increased due to higher offers by big fund houses.
The total number of investors stood at 4.3 crore at the end of January, data from the Association of Mutual Funds in India showed. The total number of investors has been calculated taking into account the total PAN card registrations. The fund industry has set a target of 1 crore investors by 2030. The number of investors is increasing rapidly due to the increasing reach of online investment platforms and investor awareness.
Most of the new investors are coming through fintech. Data shows that 40 percent are being registered in SIP direct plans. Most of these are new investors. This trend is also being helped by the changing preferences of investors. They are now giving more emphasis on investment rather than savings. In January, investors opened more than 5 million new SIP accounts compared to 4 million in December 2023.