Investors continue to be the attraction of mutual funds, in 2020 mutual fund companies added 72 lakh new folios

Despite the challenges of the Corona era, mutual funds continue to attract investors. Mutual fund companies added 72 lakh new folios in 2020. Investors’ inclination towards mutual funds has increased due to high spendable income and low interest on bank deposits. In 2019, the mutual fund industry added 6.8 million folios. The accounts of individual investors are called folios. An investor can have multiple folios.

By the end of December 2020, the total number of folios of 45 mutual fund companies has increased by 72 lakhs to 9.43 crores, according to data. By the end of December, 2019, the number was 8.71 crores. Harshad Chetanwala said that during the Covid-19 epidemic in 2020, the market was ‘corrected’ and investors stepped up their mutual fund investments.

He said, ‘New investors also invested in mutual funds during this period. Existing investors diversified their investments into new schemes. For both these reasons, the number of folios increased. He said the number could have been higher, but a section of investors also booked profits.

Groww co-founder and Chief Operating Officer (COO) Harsh Jain said that opening of accounts has become easier through digital investment platforms. This has made it easier for investors to access mutual funds. Along with this, due to the cheaper option of regular plans, the trend of people from mutual funds has increased. Verification from Aadhaar on the regulatory front, UPI-based payments, new mutual fund categories and easing of existing categories and transparency in net asset value have also helped the industry boom.