Steep decline in new mutual fund investors in FY23, shows data

Number for 11 months stands at 3.7 mn against nearly 10 mn last year

The lacklustre performance of the equity market in the last 18 months has proved to be a challenge in mutual funds' (MFs) push for higher penetration. In the first eleven months of the current financial year (FY 2023), the industry has added only 3.7 million new investors compared to almost 10 million during the same period of FY22, shows industry data.

MFs identify new investors through their Permanent Account Number (PAN) and a new PAN is counted as addition of a new investor.

According to MF executives and senior distributors, the new investor addition has moderated mainly due to a