70% of mutual fund investors in India earn less than Rs 5 lakh per year

The mutual fund industry gets 30% of assets under management (AUM) from people with incomes of less than Rs 5 lakh per year, the finance ministry said in a response to a question to Lok Sabha.

According to Sebi data cited by Minister of State at the Ministry of Finance Pankaj Chaudhary, there are 1.85 crore of mutual fund investors in the country. Of these, investors whose income is less than Rs 5 lakh constitute 70%. However, the 70% of investors represent only 29% of the assets of the mutual fund industry. Investors with income over 1 crore accounted for 31% of the mutual fund’s assets under management.

The question the minister answered came from Pravesh Sahib Singh, a member of Lok Sabha.

“Details of mutual fund investors in the Indian financial market, by percentage and by income group;

(b) whether the government believes that investing in mutual funds could benefit the lower strata of the economic spectrum and, if so, details about that;

(c) whether the government has undertaken any awareness or education programs to improve financial literacy about mutual funds among different economic sections of society and to remove qualifications, occupation and income barriers to the entry into the market; and

(d) if so, the details and, if not, the reasons? ”

Here is an overview of the data presented by the ministry to Lok Sabha:

AND online

The ministry also informed the Lok Sabha that there had been an increase in investment in B-30 cities mutual funds. The total AUM of B-30 cities increased by 86%, from Rs 3.48 lakh crore in 2019-2020 to Rs 6.46 lakh crore in 2021-22. The mutual fund industry’s total assets under management increased only 68% over the same period. Apart from that, there had been an increase in the systemic investment plans of B-30 cities.

“SEBI has taken a number of regulatory initiatives to ensure investor protection, market integrity and to improve operational efficiency, market penetration and deepening of the mutual fund industry beyond Top 30 cities (B-30 cities). In recent years, there has been a significant increase in investment in mutual funds from B-30 cities, ”said Pankaj Chaudhary in Lok Sabha.

Comments are closed.