India became crazy about mutual funds, 81 lakh investors joined in two months

Mutual Fund In India: The pace at which people in India are becoming aware of the stock market and are coming forward to invest. The growth of the mutual fund industry is also happening at the same pace. You will be surprised to know that the mutual fund industry has added more than 81 lakh investor accounts in the first two months (April-May) of the current financial year (FY 2024-25). The main reason for this is constant marketing efforts, celebrity endorsements and proper functioning of the distribution network.

Trivesh D, COO of stock trading platform Tradejini, said in a media interaction that apart from this, changing perceptions about FDs and increasing income levels and access to financial markets have also contributed to the increase in the number of new investors. FD schemes do not give returns as compared to mutual funds.

Have the ability to beat inflation

He said that along with this, the prospects for mutual funds remain strong, which is being supported by the ongoing boom in the stock market, risk management, continuous education of investors and continuous marketing efforts. Experts said that apart from this, the industry will continue to grow well as investors who save are now looking for investment options for long time periods.

PGIM India Mutual Fund CBO Abhishek Tiwari said that as India's per capita income increases, investors will want to save money in asset segments that have the potential to beat inflation and create wealth. As the reach of mutual funds increases.

What does the report say?

According to data from the Association of Mutual Funds in India (Amfi), the number of mutual fund folios in the industry stood at 18.6 crores at the end of May, which is 4.6 percent or 81 lakh more than the 17.78 crores recorded at the end of March. Let us tell you that folio is the number given to individual investor accounts. An investor can have multiple folios.