Number of MF investors crosses 40 million, SIP flows scale a new high

Inflows in Sept were higher than the average flows seen in FY24

The number of unique mutual fund investors crossed the 40-million mark in September 2023, the Association of Mutual Funds in India (Amfi) said on Wednesday.

According to industry executives, though the penetration remains low, reaching the 40-million mark is of significance for the 'nascent' industry.

“Every milestone we achieve is very significant for us and it’s because of the efforts put in by the industry, the regulator, and the government over the years.

In recent years, increased focus on investor education, making products simpler, digitalisation and financialisation of savings has helped in building investor trust. It has given mutual fund products the required push,” said DP Singh, deputy managing director (Dy MD) & joint chief executive officer (joint CEO), SBI Mutual Fund.

AMFI CEO NS Venkatesh said the 40-million investor count is a "testament to Indian retail investors’ participation in equity markets through the MF route.”

Last month, the NSE said the total number of unique investors directly investing in the stock market has surged to 80 million for the first time. The latest 10 million additions took place in just eight months.

The MF route is taken by investors to invest in exchange-traded funds (ETFs) and actively-managed schemes. The stock exchange route is taken to directly invest in stocks, bonds and commodities, through a broker.