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In April-July 2017, pace of equity folio additions hit highest since 2007

So far in four months of the current financial year, nearly 3 million equity accounts were opened

Chandan Kishore Kant  |  Mumbai 

Photo: Shutterstock
Photo: Shutterstock

India's mutual fund sector is witnessing a new wave of equity participation. So far during this financial year (April-July), industry has added nearly 3 million equity folios, at an average of 750,000 a month.

This is the highest pace of account additions since 2007-08. During 2007-08, just ahead of the financial crisis, the industry added an average million equity accounts a month.

If the current pace of account additions in the equity segment continues unabated, the current financial year may end up adding nine million equity folios, taking the overall equity accounts to a massive 50 million.

The steep rise in account additions comes at a time when Indian share indices have been hovering at historical highs.

In the previous financial year 2016-17, when the sector had added 4.8 million equity accounts.

Ever since the Narendra Modi-led government took charge in 2014, there has been a continuous rise in equity investors' base. Against below 30 million in March, 2014, it currently stands at 43.8 million.

The overall equity assets have already surged from below Rs 2 lakh crore to about Rs 7 lakh crore. Incremental inflows over the last three years have been in excess of Rs 2 lakh crore.

Sector officials feel that investors will keep flocking to equity as long as other investment avenues do not look attractive.

First Published: Thu, August 10 2017. 23:11 IST