In a written reply, Pankaj Chaudhary, minister of state for finance, informed the Lok Sabha that as of 31 October 2021, over 135,000 investors earning between Rs 1 crore to Rs 5 crore annually had invested Rs 9.93 lakh crore in MFs. This contribution comes to 30.91% of the total money invested by investors in MFs.
The second highest contributor in the MF investment is from those who earn Rs 1 lakh to Rs 4 lakh, whose contribution in total AUM is Rs7.72 lakh crore or 24.04%. This group, at 61.21%, is the biggest contributor in the total number of individual investors in MFs.
Those earning between Rs 5 lakh and Rs 10 lakh are the third-largest group of individual investors, at 19.28%. This group has contributed Rs 5.98 lakh crore or had a share of 18.64% in the total AUM of MF investments in India.
Those earning above Rs 5 crore have a negligible share as only 245 investors from this earning group had invested Rs 408.86 crore in MFs.
Market regulator Securities & Exchange Board of India (SEBI) has taken a number of initiatives to enhance market penetration of the MF industry beyond the top-30 cities (B-30 cities).
“Over the past few years, there has been a significant rise in investment in MFs from the B-30 cities. Total AUM from B-30 cities has grown by 86% to Rs6.46 lakh crore in 2021-22 (till 31 October 2021) from Rs3.48 lakh crore in 2019-20. At the same time, the total AUM of the MF industry has grown only by 68% during the same period. There also has been an increase in the number of systematic investment plans (SIPs) from the B-30 cities,” said Chaudhary.
During April and October 2021, Sebi conducted 3,686 investor awareness programme (IAPs), online as webinars, which 292,000 investors attended.
In fact, growing investor interest in mutual funds has helped assets managed by Indian MFs rise to a record high of Rs 37.3 lakh crore in October, up from Rs 36.7 lakh crore in September and Rs 28.2 lakh crore a year earlier. During the month, contributions through the systematic investment plan (SIP) route also rose to a new record high at Rs 10,519 crore, data from industry trade body AMFI showed.