Individual investor's share in equity cash segment turnover is at 35.9% in FY24, says Economic Survey; annual net SIP flows double past three years, from Rs 0.96 lakh crore in FY21 to Rs 2 lakh crore in FY24.
Nearly 20% of Indian households are potentially channeling their savings into the financial market.
This significant shift in financial behaviour is pointed out by the Economic Survey for 2023-24, which was tabled in the Parliament by Finance Minister Nirmala Sitharam on Monday.
"The individual investor's share in the equity cash segment turnover was at 35.9% in FY24. The number of demat accounts with both depositories rose from 1,145 lakh in FY23 to 1,514 lakh in FY24. The impact of this influx of individual investors in the market is also reflected in new investor registrations with the exchanges, their share in total traded value, net investments, and ownership in the listed companies," the Economic Survey said.
The assets under management (AUM) for mutual funds surged to a 35% year-on-year growth to a staggering Rs 53.4 lakh crore in FY24.
Within the mutual fund space, systematic investment plans (SIPs) became highly popular among retail investors. Annual net SIP flows have doubled in the past three years, rising from Rs 0.96 lakh crore in FY21 to Rs 2 lakh crore in FY24.
The total AUM under SIP accounted for approximately 35% of the AUM for equity-oriented schemes in the mutual fund industry.
"The MF segment presently has about 8.4 crore SIP accounts through which investors regularly invest in schemes," said the Economic Survey.
