In FY2025, the Indian mutual fund (MF) industry welcomed nearly 1 crore new investors, a remarkable growth milestone. According to a report, the number of investors surged from 4.45 crore in March 2024 to 5.43 crore by March 2025, marking a 22% year-on-year increase.
This surge reflects a powerful trend: growing retail participation driven by greater digital access and rising financial literacy across the country.
The growth in mutual fund participation is evident in the numbers:
| Category | FY 2024 | FY 2025 | Change |
| Unique PANs | 4,42,27,761 | 5,39,07,592 | +96,79,831 |
| PEKRN (PAN-exempt) | 3,60,689 | 3,41,043 | -19,646 |
| Total Investors | 4,45,88,450 | 5,42,48,635 | +96,60,185 |
While 96.80 lakh PAN-linked investors were added during the year, the slight decline in PEKRN (PAN-exempt Know Your Customer Registration Number) accounts is due to stricter KYC norms, encouraging a shift toward PAN-based registrations.
The growth in FY 2025 stands as the second-highest annual addition in the Indian MF industry’s history. The leader remains FY 2021, a year that saw retail participation surge due to pandemic-driven opportunities.
| Financial Year | New Investors Added |
| FY 2025 | 96,60,185 |
| FY 2024 | 69,04,951 |
| FY 2023 | 40,18,409 |
| FY 2022 | 1,09,03,909 |
| FY 2021 | 19,61,995 |
Crossing 5 crore investors is more than just a numeric milestone — it’s a sign of India’s evolving retail investment landscape. As more individuals adopt mutual funds for wealth creation, the industry stands at the cusp of an even broader transformation. With ease, trust, and accessibility all improving, mutual funds are not just “sahi” — they are now essential for India’s financial future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 15, 2025, 4:13 PM IST
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