People with income below Rs 5 lakh constitute 70% of total MF investors

There are 1.85 crore mutual fund investors in the country, and people with income below Rs 5 lakh constitute 70 per cent of the total investors. But, they only account for 29 per cent of the assets of the mutual fund industry, the Ministry of Finance informed the Lok Sabha. 

30 per cent of industry Assets Under Management (AUM) stem from individuals with an income of less than Rs 5 lakh. 

Investors with an income of more than one crore accounted for 31 per cent of the mutual fund AUM.
 

The ministry shared the details of mutual fund investors in the Indian financial markets revealing, that as of Oct 31, 2021, there were 1,85,71,372 unique individual investors in mutual funds with assets under management (AUM) accounting for Rs 32,10,389.03.

Up to 61 per cent (1,13,66,741) of the total individual investors were in the income slab of Rs 1- 5 lakh, and this group comprised 24 per cent of the total Assets Under Management (AUM).

There are 1,35,446 or 0.73 per cent of unique individual investors earing Rs 1- 5 crore with AUM worth Rs 9,93,121,66.

The ministry further said that there has been a rise in investments in mutual funds from the B-30 cities. Total AUM from B-30 cities grew by 86 per cent from Rs 3.48 lakh crore in 2019-2020 to Rs 6.46 lakh crore in 2021-22 (till Oct 31, 2021). The total AUM under the mutual fund industry has grown by only 68 per cent during the same period. 

The ministry further said that there had been an increase in the Systemic Investment Plans from B-30 cities. 

It informed the Lok Sabha that SEBI had undertaken 5,568 investor awareness programs in 2020-21, with 3,06,294 participants.