According to Securities and Exchange Board of India, how many unique mutual fund (MF) investors were there in India, as of June 2024?

The correct answer is 4.7 crore.

Key Points

• As of June 2024, India had 4.7 crore unique mutual fund investors, according to the Securities and Exchange Board of India (SEBI).
• This figure reflects the growing interest and participation of retail investors in the mutual fund industry.
• SEBI, established in 1988, is the primary regulator for the securities market in India, ensuring market transparency and investor protection.
• The increase in mutual fund investors can be attributed to various initiatives like investor education programs and simplified investment processes.
• Mutual funds offer a diversified investment portfolio, which is attractive to retail investors seeking to balance risk and return.

Additional Information

• Mutual Funds:
  • Mutual funds are investment vehicles that pool money from many investors to purchase securities like stocks, bonds, and other assets.
  • They are managed by professional fund managers who allocate assets based on the fund's investment objectives.
  • Mutual funds offer various types such as equity funds, debt funds, hybrid funds, and index funds to cater to different investment goals and risk appetites.
  • Investors can benefit from diversification and professional management, potentially reducing the risk compared to individual securities investments.
• Securities and Exchange Board of India (SEBI):
  • SEBI is the regulatory body for the securities market in India, responsible for protecting investor interests and promoting market development.
  • It was established on April 12, 1988, and given statutory powers on January 30, 1992, through the SEBI Act, 1992.
  • SEBI's functions include regulating stock exchanges, mutual funds, and market intermediaries, as well as enforcing market rules and regulations.
  • SEBI also conducts investor education programs to increase financial literacy and awareness among retail investors.
• Investor Education and Protection Fund (IEPF):
  • IEPF is established by the Government of India to promote investor education and awareness.
  • The fund is utilized to educate investors about the securities market and their rights and responsibilities.
  • IEPF also provides grants to organizations conducting investor education programs.
  • The fund aims to create informed and vigilant investors who can make better investment decisions.
• Systematic Investment Plan (SIP):
  • SIP is a method of investing in mutual funds where investors contribute a fixed amount regularly (monthly or quarterly).
  • This method encourages disciplined investing and helps in averaging out investment costs over time.
  • SIP is popular among retail investors for its convenience and potential to build wealth over the long term.
  • Investors can start SIPs with a small amount, making it accessible to a broader audience.