Mutual funds have come a long way in the investment portfolio of retail investors. This is reflected in the number of accounts that have increased over the last couple of years. The number of investors account has increased from 9.79 crore at the end of FY22 to 17.79 crore at the end of FY24. These accounts, known as folios, represent multiple accounts held by individuals across various funds. Hence, this is therefore not a count of the number of investors but the number of accounts. Most of these accounts are held by individual investors.
Out of this total 17.79 crore accounts, the share of retail investors was 16.26 crore, accounting for 91 per cent of total accounts. Such an increase in accounts has led to higher share of retail investors in the overall assets of the industry. Individual investors now held 60.6 per cent of the total assets in May 2024, compared with 55 per cent in May 2022. In the same period, mutual funds' assets under management (AUM) have gained by 58 per cent. This has increased from ₹37.22 lakh crore at the end of May 2022 to ₹58.91 lakh crore at the end of May 2024.
What is heartening to note is that the retail investors' assets of mutual funds have increased at a much faster pace. Compared to an industry increase of 58 per cent, retail investors saw their assets increasing by 74 per cent in the same period. This has increased from ₹20.4 lakh crore to ₹35.7 lakh crore in the same period. Even within these assets, 85 per cent or almost ₹30 lakh crore is held in the form of equities. This robust growth underscores the growing importance of mutual funds in retail investors' financial plans, emphasising their effectiveness in achieving several financial goals.
Denne historien er fra July 1, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 1, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
