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India goes crazy for mutual funds, 81 lakh new investors joined in just two months

Sagar Patel

By Sagar Patel

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Investment fund

The speed with which people in India are becoming aware of the stock market and are encouraged to invest. The mutual fund industry is also growing at the same pace. You will be surprised to know that the mutual fund industry has added more than 81 lakh investor accounts in the first two months (April-May) of the current financial year (FY 2024-25). The main reason for this is the continuous marketing efforts, celebrity endorsements and the proper functioning of the distribution network.

Apart from this, changing perceptions about FDs and rising income levels and access to financial markets have also contributed to the rise in the number of new investors, said Trivesh D, COO of trading platform Tradejini shares, in an interaction with the media. FD schemes do not offer returns as compared to mutual funds.

It has the ability to beat inflation.

He said that furthermore, the outlook for mutual funds remains strong, which is supported by the current stock market boom, risk management, continued education provided to investors and continued marketing efforts. Apart from this, the industry will continue to grow well as savings investors are now looking for investment options for long periods of time, experts say.

Abhishek Tiwari, CBO, PGIM India Mutual Fund, said that as India’s per capita income rises, investors will want to save money in asset segments that have the potential to beat inflation and create wealth. As the scope of mutual funds increases.

What does the report say?

According to data from the Association of Mutual Funds of India (Amfi), the number of mutual fund folios in the industry stood at 18.6 crore at the end of May, an increase of 4.6 per cent or 81 lakh since 17.78 crore at the end of March. We tell you that folio is the number given to the accounts of individual investors. An investor can have several folios.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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