Increasing awareness about mutual funds, ease of transactions through digitization, and a sharp surge in equity markets have aided asset management companies to add a staggering 3.17 crore investor accounts in 2021-22, with experts saying the trend is likely to continue this fiscal as well.

This was a significant rise from 2020-to 21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed.

The ongoing financial year to appears to be promising in terms of folios as an increase in investor accounts will enable people to move beyond fixed deposits and savings accounts, said Priti Rathi Gupta, founder of LXME, a financial platform for women.

Market conditions, geopolitical situations, inflation rates, financialization of investments, and increasing awareness among the people are some of the elements that may have an impact on this industry, she added.

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If the retail investors get spooked by the market turbulence driven by a change in interest rates, then folios are expected to decline, said Swapnil Bhaskar, Head of Strategy, Niyo-a millennial-focused neo-banking fintech.

According to the data, the number of folios with 43 fund houses rose to 12.95 crore in March 2022 from 9.78 crore in March 2021, registering a gain of 3.17 crore during the one-year period.

Source - PTI