How Much Salary To Invest in Mutual Funds?

Mutual funds can be the cornerstone of your financial success. By understanding their benefits, aligning them with your goals and investing consistently, you will be well on your way to achieving your financial dreams. The article highlights how you can use mutual funds to make your dreams come true

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Mutual funds have come a long way in the investment portfolio of retail investors. This is reflected in the number of accounts that have increased over the last couple of years. The number of investors account has increased from 9.79 crore at the end of FY22 to 17.79 crore at the end of FY24. These accounts, known as folios, represent multiple accounts held by individuals across various funds. Hence, this is therefore not a count of the number of investors but the number of accounts. Most of these accounts are held by individual investors.

Out of this total 17.79 crore accounts, the share of retail investors was 16.26 crore, accounting for 91 per cent of total accounts. Such an increase in accounts has led to higher share of retail investors in the overall assets of the industry. Individual investors now held 60.6 per cent of the total assets in May 2024, compared with 55 per cent in May 2022. In the same period, mutual funds' assets under management (AUM) have gained by 58 per cent. This has increased from ₹37.22 lakh crore at the end of May 2022 to ₹58.91 lakh crore at the end of May 2024.