Market Volatility Slows MF Investor Additions

Industry adds 300,000 new investors in April, lowest in 22 months

- ABHISHEK KUMAR

New investor additions by mutual funds (MFs) have slowed dramatically in recent months, indicating that market correction and a rise in volatility are somewhat dimming the appeal of equity schemes.

MFs have onboarded 300,000 new investors in April 2025, the lowest in 22 months. During the previous 12 months, the investor count had grown at an average pace of 960,000 every month.

The total number of unique investors is mapped by the total permanent account number (PAN) registrations. At the end of April 2025, the industry had 54.6 million unique investors. According to MF officials, the decline in new investor additions in recent months is largely due to the volatility in the equity market.

"The pace of new investor additions is influenced by the trajectory in the equity market. As and when the market stabilizes, the flow of new investors will pick up again," said B Gopkumar, managing director (MD) and chief executive officer (CEO) of Axis AMC.