Retail buyers take mutual fund route to stock market rally; 32 lakh new investors join in 1 year

The mutual funds’ asset base saw a rise of nearly 4.75 lakh crore to 23 lakh crore in the FY18 registering a growth of 26%. (Image: Reuters)

India’s stock market investment seemed to have gathered more pace as in the last one year following a higher participation from the retail investors relatively compared to the past few years. The key equity indices Sensex and Nifty have advanced 10 to 11% in the financial year 2017-2018 with the blue-chip stocks such as Titan Company and Avenue Supermarts vastly outperforming the benchmark returns. The large-cap stocks of Avenue Supermarts and Titan Company have more than doubled the investors’ wealth.

Following an unmatched rally in the Indian stocks which was nearly in line with the global stock markets surge, retail buyers who were willing to ride the stock market rally have taken mutual fund route. In the last one year, as many as 32 lakh new investors have been added in the mutual fund Industry, PTI reported citing an A Balasubramanian, Chairman, AMFI. The main reason for the new investors’ addition has been the elevated and passionate campaigning by the AMFI.

The mutual fund industry is now aiming to add about 50 lakh new investors in the next one year on following the increased focus of industry (Association of Mutual Funds of India), guided by the collective wisdom of mutual fund players, to reach out additionally to investors present in small cities and towns. “The mutual funds sahi hai campaign which is one of the unique collaborative initiative of the industry would help to achieve getting 2% of India’s population to invest in MF in the next one year,” A Balasubramanian was quoted in the report.

“Given the rising household incomes and higher appetite towards financial savings coupled with long-term India growth story, we are sure that mutual funds would become the investment option of choice of every household in the years to come,” A Balasubramanian was quoted in the PTI report. Following a massive participation by the investors, the mutual funds’ asset base saw a rise of nearly 4.75 lakh crore to 23 lakh crore in the FY18 registering a growth of 26%.

[“Source-financialexpress”]