Lok Sabha Question No. 122 (UNSTARRED), answered on 2021-11-29
Subject: Mutual Funds Investors
Ministry: FINANCE
Asked by: Parvesh Sahib Singh

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFARRS

## LOK SABHA

## UNSTARRED QUESTION NO. 122 TO BE ANSWERED ON MONDAY, November, 2021/ Agrahayana 8, 1943 (Saka) 29th

## Mutual Funds Investors

## 122. SHRI PARVESH SAHIB SINGH VERMA:

Will the Minister of Finance be pleased to state:

- (a) the details of Mutual Funds investors in the Indian financial market;, in per cent and income-group wise;
- (6) whether the Government believes investment in Mutual Funds could benefit the lower strata of the economic spectrum and if S0, the details thereof;
- (c) whether the Government has undertaken any awareness or education programmes to improve the financial literacy about Mutual Funds among the various economic sections of society and removing the qualifications, occupation and income barriers to entry into the market; and
- (d) ifso, the details thereof and ifnot; the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a): As per the information provided by Securities and Exchange Board of India (SEBI); the details of individual mutual fund investors aS on October; 2021, based on income-slab, with respect to their investments in mutual funds are as follows: 3]st

| Individual Investor Income Slab (NNR)   | Unique Individual investors   | Per cent of total Individual Investors   | Asset Under Management (AUM) in INR Crores   | Per cent of AUM   |
|-----------------------------------------|-------------------------------|------------------------------------------|----------------------------------------------|-------------------|
| Below 1 Lakh                            | 16,33,909                     | 8.80%                                    | 1,44,363.71                                  | 4.50%             |
| 1-5 lakhs                               | 1,13,66,741                   | 61.21%                                   | 7,71,650.59                                  | 24.04%            |

| Individual Investor Income Slab (INR)   | Unique Individual investors   | Per cent of total Individual Investors   | Asset Under Management (AUM) in INR Crores   | Per cent of AUM   |
|-----------------------------------------|-------------------------------|------------------------------------------|----------------------------------------------|-------------------|
| 5-10 Lakhs                              | 35,81,287                     | 19.28%                                   | 5,98,459.05                                  | 18.64%            |
| 10-25 Lakhs                             |                               | 7.71%                                    | 3,61,744.41                                  | 11.27%            |
| 25 Lakhs 1 Crore                        | 4,22,131                      | 2.27%                                    | 3,40,640.75                                  | 10.61%            |
| 1-5 Crores                              | 1,35,446                      | 0.73%                                    | 9,93,121.66                                  | 30.93%            |
| 5 Crores                                | 245                           | 0.00%                                    | 408.86                                       | 0.01%             |
| Total                                   | 1,85,71,372                   | 100.00%                                  | 10,389.03 32,                                | 100.00%           |

## Note:

- First holder'$ PAN and self-declaration by that PAN holder have been considered for the purpose of determination of their income-slab
- The data has been provided for Statement of Account (SOA) holders only:
- (b): While mutual fund investments are subject to market risk, they are also an option for wealth creation. SEBI has taken a number of regulatory initiatives for ensuring investor protection, integrity of the market, and for enhancing operational efficiency, market penetration and deepening of the mutual funds industry beyond the top 30 cities (B-30 Cities) Over the past few years, there has been a significant rise in investments in mutual funds from the B-30 cities Total AUM from B-30 cities has grown by 86% from Rs. 3.48 lakh crore in the year 2019-20 to Rs. 6.46 lakh crore in 2021-22 (till October 31,2021), while the total AUM of the Mutual Fund industry has grown only by 68% during the same time period. There has also been an from the B 30 cities:
- (c) and (d): SEBI undertakes various Investor Awareness Programs (LAPs) across the country in association with mutual fund industry for the general investing public including target groups from armed/police forces, women investors, women self-help groups, university students and faculty, farmers, etc Pre Covid-19, the IAPs were conducted as physical onground programs However; since March 2020, most programs have been conducted online as webinars. The details are as follows: special

| Year                     | 2020-21   | April 2021 October 2021   |
|--------------------------|-----------|---------------------------|
| Number of IAPs conducted | 5,568     | 3,686                     |
| Number ofParticipants    | 3,06,294  | 292,018                   |