The giant investment platform Mutual Funds have recently announced an addition of over 72 lakh folio in the pandemic in the year 2020 as higher disposable income and low interest on bank deposits. This leads to attracting investors towards the financial instrument.
According to the comparison, the industry has foreseen an addition of over 68 lakh investor accounts in 2019, data with the Association of Mutual Funds in India.
Folios are considerable numbers that are designated to individual investor accounts. With the increase in folios, it has been expected that it will reach 9.43 crore by the end of December 2020.
In 2020, most of the investors added to their mutual fund investment with the reason to COVID-19 and the recovery phase. Harshad Chetanwala, co-founder MyWealthGrowth asserted that this was indeed a very time investors have chipped during the period as the markets are looking for many attractive and existing investors that are separated with their investments in new schemes. Further, he dropped a statement that the number is expected to increase with the segment of investors who have opted to book profits and shuffle from non-performing funds to a better option.
Harish Jain, co-founder, and COO of Grow said that the digital investments have considerably made the onboarding and account opening seamless with the increase in accessibility to mutual funds.
Moreover, the popularity of mutual funds has been a low-cost alternative to regulate plans that attract investors to mutual funds.
Aadhar-based verifications, UPI-based payments, have been introduced and simplified with the new and existing mutual fund categories in net asset value. This has made the process simpler, giving the necessary push to the mutual fund industry.
The RBI slashed interest rates on advances and deposits to inject liquidity into the economy. With most people working from home and enabling them to step outside for leisure, expenses dropped and saving increased.