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regular-article-logo Tuesday, 23 July 2024

Mutual funds add 3 crore folios

Folios are numbers designated to individual investor accounts

PTI New Delhi Published 18.04.22, 04:01 AM
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Increasing awareness about mutual funds, ease of transactions through digitisation 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 2020-21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed.

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The ongoing financial year too appears to be promising in terms of folios as 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, financialisation of investments and increasing awareness among the people are some of the elements that may have an impact on this industry, she added.

If the market turbulence driven by change in interest rates spooks the retail investors, folios are expected to decline, said Swapnil Bhaskar, head of strategy, Niyo — a millennial-focused neo-banking fintech.

Folios are numbers designated to individual investor accounts. An investor can have multiple folios.

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