Choppy mkts dent equity MF inflows

Investor count up only 5.2% in first half of CY2025, as against 12% rise in year-ago period

- ABHISHEK KUMAR

Systematic investment plan (SIP) inflows continue to scale new highs, but mutual fund (MF) growth has stumbled on other fronts, as market volatility, global uncertainties, and a slowdown in corporate earnings have soured investor sentiment.

New investor additions and lump sum inflows into equity schemes slowed considerably in calendar year (CY) 2025. The unique MF investor count rose just 5.2 per cent in the first half (H1) of 2025, compared to a nearly 12 per cent increase in the same period last year. The industry had 55.3 million unique investors as of June 2025, up from 52.6 million in December 2024.

Experts say the pace of investor additions is closely tied to equity market performance. "The key reason for the lower additions this year has been weak equity market sentiment," said Amit Bivalkar, founder-director at Sapient Finserv.