Mutual Fund: 81 lakh investors joined in two months, number of folios increased to 18.6 crores
Mutual Fund: The total number of folios of equity schemes in India has reached a record high of 12.89 crores. In the last two months, 81 lakh new investors have joined mutual funds. People's attraction to the stock market is constantly increasing.
81 lakh new investors have joined the mutual fund industry in the first two months of the current financial year, April and May. This has happened due to continuous distribution efforts and the strengthening of the distribution network. Most of the investments are being made by people up to the age of 40 years. According to the data of the Association of Mutual Funds in India (Amfi), the number of mutual fund folios increased to 18.6 crores at the end of May. It was 17.78 crores at the end of March. There was an increase of 45 lakh folios in May. 36.11 lakh folios were added in April. Out of the total 81 lakh folios, 61.25 lakh are opened in equity-focused schemes. This has taken the total number of folios of equity schemes to a record high of 12.89 crores. These schemes account for 69 percent of the total folios in mutual fund houses.
According to the data, an average of 22.3 lakh folios were added every month in 2023. This year it has more than doubled. Most new investors are taking the route of digital channels for investing in mutual funds. The surge in folios in the last few years has been due to Gen-Y and Gen-Z investors. Gen Y means those born between 1981 to 1996 and Gen Z means those born between 1997 to 2012.
Foreign institutional investors invested Rs 11,730 crore in India last week. These investors purchased during a period of market expansion in both the domestic and international markets. Nonetheless, these investors have withdrawn Rs 3,064 crore this month. Foreign institutional investors (FIIs) sold Rs 14,794 crore in domestic stock markets in the first week of June. The market plummeted dramatically as a result of the Lok Sabha elections.
However, during intraday trade last week, the Sensex surpassed 77,000. These investors withdrew Rs 25,586 crore in May. In April, they took out Rs8,700 crore. In contrast, the market capitalization of the top five listed companies climbed by Rs 85,582 crore last week. LIC's capital climbed the greatest, reaching Rs46,425 crores.
