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AMCs add 51 lakh investor accounts in Apr-Jun qtr
Experts attribute the growth to increasing awareness about MFs and ease of transactions through digitisation
New Delhi: Asset management companies added 51 lakh investor accounts in June quarter, taking the total tally to 13.46 crore, on increasing awareness about mutual funds and ease of transactions through digitisation, and experts hope the ongoing financial year to be promising too.
In comparison, 93 lakh accounts (or folios in mutual fund parlance) were opened in March quarter, while a staggering 3.2 crore investor accounts were added in the last 12 months, data with the Association of Mutual Funds in India (Amfi) showed. Although there were fewer folios in April-June this year than in the March quarter, there was still an increase, which is an indication that investors continued to invest despite the volatility in the market.
Geopolitical tensions like the Russia-Ukraine War, increasing inflation, rising bond yields, and the Federal Reserve's hawkish views on interest rates are a few factors that can be attributed to this, said Priya Agrawal, Money Coach at LXME. Going forward, the ongoing financial year appears to be promising in terms of folios growth, she said. Market conditions, geopolitical situations, inflation rates, financialisation of investments and increasing awareness among the people are some of the elements that may have an impact on this industry, she added.
"Majority of mutual fund retail investors invest in equity funds. The market conditions will have a role to play in increasing the number of folios and investors. The participation will increase when more stability returns in the stock market, which may happen in the coming few quarters. Hence, we believe the reach and penetration of mutual funds will increase this financial year," Harshad Chetanwala, Co-founder of MyWealthGrowth.com, said.
