Mutual Fund Sector Sees Robust Growth in October 2023, Adds 4 Lakh New Investors

Overview

The mutual fund (MF) sector experienced a significant influx of new investors in October 2023, with the total count surpassing 4.09 crore. This period marked a substantial growth in the industry, reflecting increased investor confidence and participation.

In-Depth Analysis of October’s Mutual Fund Growth

New Investor Engagement

• The MF industry witnessed an impressive addition of 4 lakh new investors in October, elevating the total investor base to a remarkable 4.09 crore.

Expansion in Folio Numbers

• The industry saw a substantial increase in folio counts, adding 25.51 lakh new folios in October, resulting in a total of 15.96 crore folios.
• This marks a notable rise from September 2023’s folio count of 15.71 crore.

Geographical Distribution of Assets

• The total Assets Under Management (AUM) in the MF sector climbed to a staggering Rs. 48 lakh crore.
• A significant 82% of these assets, amounting to Rs. 38.19 lakh crore, originated from top-tier cities (T30 locations).
• Meanwhile, smaller cities (B30 locations) contributed 18% to the total MF assets, equating to Rs. 8.53 lakh crore.

Average AUM Insights

• The average AUM per folio for retail investors was Rs. 1.76 lakh.
• In B30 cities, the average AUM per folio stood at Rs. 1 lakh, whereas in T30 cities, it was higher at Rs. 2.38 lakh.

SIP Account Trends

• The industry added nearly 35 lakh new Systematic Investment Plan (SIP) accounts, despite around 18 lakh SIP accounts being discontinued or reaching maturity.
• The total number of active SIP folios reached 7.30 crore, with a dominating 83% (6.08 crore folios) invested in equity-oriented funds.

Distributor Network Growth

• The MF industry welcomed over 4,600 new distributors, including 2,200 individual Mutual Fund Distributors (MFDs).
• Notably, Maharashtra led with 27.42% of new ARN registrations, followed by Gujarat (9.68%) and Uttar Pradesh (6.71%).
• Additionally, 4,084 distributors renewed their ARN, contributing to the sector’s expansion.

Conclusion

October 2023 marked a milestone for the mutual fund industry in India, showcasing robust growth in investor participation, asset accumulation, and distributor network expansion. This reflects a growing trust and interest in mutual funds as a viable investment option among a diverse demographic across the country.