SIP investment in mutual funds doubled in 3 years!!!
Despite the global upheaval, the indian stock market has seen a great boom, the credit for which goes to the retail investors of the country. Retail investors have replaced foreign investors and this has also been confirmed in the Economic survey presented for the financial year 2023-24. Especially the investment of retail investors has increased through mutual funds and systematic investment plans in it.
The Economic survey quoted AMFI data and said that there are 8.4 crore SIP accounts in mutual funds through which investors invest in mutual fund schemes. In the last three years, SIP investment has doubled to Rs 2 lakh in FY 2023-24 as against Rs 0.96 lakh crore in FY 2020-21. SIP AUM accounts for 35 per cent of the total AUM of equity schemes of mutual funds.
With the increase in the participation of retail investors in mutual funds, the ownership of mutual funds in indian equities has increased to 9.2 per cent by 31 december 2023 from 7.7 per cent as on 31 december 2021. The number of folios of mutual funds has increased from 14.6 crores in FY 2022-23 to 17.8 crores in FY 2023-24. Inflows have increased in all schemes except income and debt schemes. Net assets of other ETFs have jumped by 37 per cent in FY 2023-24, except gold.
According to the Economic survey, while trading by retail investors directly through demat accounts has increased, investment through mutual funds has also increased indirectly. The share of individual investors in the equity cash segment in the turnover of the cash segment was 35.9 percent in the financial year 2023-24. Demat accounts increased from 11.45 crores in the financial year 2022-23 to 15.14 crores in the financial year 2023-24. According to the survey, the financial year 2023-24 has been strong for mutual funds and their assets under management have jumped by Rs 14 lakh crore to Rs 53.4 lakh crore in the financial year 2023-24.
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