3.2 Lakh New Investors Join Mutual Fund in May; SIP Accounts Cross 9 Crore

The mutual fund industry in India saw a significant expansion during May, reporting a noteworthy increase in investor base and SIP accounts. Here's an overview of the key developments shaping the mutual fund landscape.

Mutual Fund Industry Adds 3.2 Lakh New Investors in May

In May, the industry added around 3.19 lakh new investors, elevating the total count of unique mutual fund investors from 5.46 crore to 5.49 crore. This upward momentum highlights growing retail investor confidence in mutual funds as wealth-creation tools. Moreover, the folio count climbed by 20 lakh, increasing from 23.63 crore to 23.83 crore.

Retail AUM Per Folio Shows Consistent Gains

The average assets under management (AUM) per folio improved across both T30 and B30 cities. 

• T30 cities reported an increase from ₹2.58 lakh to ₹2.67 lakh in average AUM per folio. 
• B30 locations noted growth from ₹1 lakh to ₹1.03 lakh. 
• Combined, the retail average AUM per folio rose from ₹1.82 lakh to ₹1.88 lakh, reflecting a 3% rise.

Total AUM Across Cities Grows Substantially

In terms of assets:

• T30 cities saw a total AUM increase from ₹56.84 lakh crore to ₹58.50 lakh crore, a 3% rise. 
• Within T30, regular plan AUM rose by 3.5% to ₹30.71 lakh crore, while direct plans climbed 2% to ₹27.79 lakh crore. 
• B30 cities experienced a 4% rise in AUM from ₹13.16 lakh crore to ₹13.70 lakh crore. 
• Regular B30 plan AUM increased to ₹10.26 lakh crore, with direct plan AUM moving up to ₹3.44 lakh crore.

Incremental Folios in T30 and B30 Equally Matched

Various locations contributed equally to folio additions:

• T30 cities added 10 lakh folios, bringing the total to 12.43 crore. 
• B30 cities also contributed 10 lakh, increasing the count from 11.30 crore to 11.40 crore.

SIP Accounts Cross 9 Crore Mark

Systematic Investment Plan (SIP) data for May reveals growth in participation and assets:

• Outstanding SIP accounts reached 9.05 crore, up from 8.89 crore. 
• 16.5 lakh new SIPs were registered in May. 
• Monthly SIP contribution edged up slightly from ₹26,632 crore to ₹26,688 crore. 
• SIP assets recorded a 5% jump from ₹13.90 lakh crore to ₹14.61 lakh crore.

Read More: How to Make Your First Crore With SIP: Start Your Journey in 2025- A Practical Guide for Gen Z Investors! 

Surge in New Fund Offers (NFOs)

A total of 19 new fund offers were launched in May. These include:

• 14 new passive funds, including 7 index funds and 7 non-commodity ETFs 
• 3 equity schemes: 1 multi-cap and 2 sectoral or thematic 
• 1 hybrid and 1 debt-oriented scheme

New ARN Registration Spikes

The month of May saw 5,004 fresh AMFI Registration Numbers (ARNs):

• 2,493 were claimed by corporate employees 
• 2,292 by individuals 
• 206 by corporates, including 202 private limited and partnership firms 
• 12 by individual MFDs, with NBFCs, banks, and public limited companies also participating minimally

State-wise, Maharashtra and Uttar Pradesh led registrations with a 19.50% and 9.91% share, respectively. Gujarat, West Bengal, and Tamil Nadu followed at 9.69%, 6.73%, and 5.68%. The industry's total ARN holders now stand at 3.03 lakh, with 55% from T30 and 45% from B30 cities.

ARN Renewals Also Rise in May

A total of 7,315 ARN renewals were undertaken last month:

• 4,189 renewals were by individuals 
• 2,928 were by corporate employees 
• 191 by corporates 
• 7 by individual MFD employees

Conclusion

May marked a positive phase for the Indian mutual fund industry, with robust increases in investors, folios, SIP accounts, and AUM across urban and emerging locations. The steady inflow into SIPs and increased activity in fund launches and registrations further underpin investor confidence in mutual funds as a long-term financial vehicle.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.