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The mutual fund (MF) investor base is set to surpass the 50-million unique investor milestone in September, with net additions expected to exceed 10 million in just 12 months, driven by sustained buoyancy in the equity market and a surge in new fund offerings (NFOs).
Previously, it took the industry 21 months to add 10 million investors, while growing from 20 million to 40 million took over 26 months.
The unique investor count is tracked using the number of permanent account numbers registered with MF schemes.
According to MF executives, the surge in new investors is underpinned by the growing appeal of equity investments.
The two industry leaders believe the growing interest in equities and systematic investment plans (SIPs) will likely double the investor count to 100 million in the next three to four years.
The industry has set a target of 100 million investors by 2030, aiming to exceed Rs 100 trillion in total assets under management.
While retail interest in equities has been steadily growing since the pandemic, the recent uptick in investor numbers is attributed to the strong market rally, the robust performance of equity schemes, and a wave of NFOs in popular categories, according to experts.
The benchmark indices, the National Stock Exchange Nifty 50 and the S&P BSE Sensex, have risen around 30 per cent over the past year. During this period, fund houses have launched numerous equity NFOs, with activity especially picking up in the last four months.
MFs launched 21 active equity schemes from May to August, collectively raising Rs 48,735 crore.