investors – Artifex.News

Mutual funds on the rise: who’s investing the most?

admin — Wed, 01 Oct 2025 01:30:00 +0000

Trader businessman searching on smartphone, analyzing in dynamic stock exchange investment
| Photo Credit: NanoStockk

At a time when foreign investors have been pulling money out of the Indian stock market, domestic investors have kept it afloat with their steady contributions. Data show that this trend has persisted for some time now. But who are these domestic investors, especially those putting their money into mutual funds?

Data show that urban Indian men continue to dominate the domestic investor market. However, in recent years, the share of those from smaller towns and non-metro areas has steadily increased. Also, one in four of these investors is a woman.

Foreign Portfolio Investors are those who invest in the stocks and shares of another country — in this case, India. On the other hand, Domestic Institutional Investors are investment bodies within India, such as mutual funds, insurance companies, banks, and pension funds, that channel money into the domestic financial market. Among them, mutual funds form a major category, pooling money from shareholders and investing it across different securities.

FPI ownership in NSE-listed companies has fallen to a 13.5-year low, while the share of Domestic Mutual Funds (DMFs) has climbed to a record high. Despite the decline, FPIs still held a higher share — 17.3% — compared with 10.3% for DMFs. So, while self-reliance through domestic investors is on the rise, the role of FPIs remains crucial.

DMFs are largely powered by Systematic Investment Plans (SIPs). These plans allow investors to put in a fixed amount of money at regular intervals — sometimes as little as ₹1,000 every month — without having to worry about when to enter or exit the market. The number of new SIP accounts surged from 14.1 million in 2020-21 to 68 million in 2024-25. Over the same period, assets under management (AUM) through SIPs grew from ₹4.27 trillion to ₹13.35 trillion.

Consequently, while a significant share of households still relies on traditional savings tools such as bank deposits, life insurance funds, and public provident funds, the proportion investing in mutual funds has been steadily rising. The share of mutual funds in households’ gross financial savings grew from 0.9% in 2011–12 to 6% in 2022–23.

An RBI study concluded that access to the market — measured by the number of demat accounts — is the most influential factor in shaping people’s willingness to invest in mutual funds. In other words, simply having the means to invest is often enough for people to begin. Other crucial determinants include low fixed deposit rates and a supportive business environment.

The number of demat accounts across India rose by 200% between 2020 and 2024, increasing from 3.8 crore to 11.8 crore. Every State/Union Territory recorded at least a 100% jump. In Bihar, the number of accounts grew by over 400% — from about 9.6 lakh to 50 lakh — while in Uttar Pradesh they climbed 348%, from 0.2 crore to 1.3 crore.

Investor participation is also no longer concentrated in metros. In September 2015, more than 80% of mutual fund AUM came from just eight cities — Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Ahmedabad, Pune, and Hyderabad. By March 2025, this share had dropped to 60%.

Also, investors are not just men. Data shows that one in four investors is a woman. As of FY25, close to 25% of individual investors are women. This has been the case since at least FY16.

Source: National Stock Exchange’s “India Ownership Tracker”, Reserve Bank of India, the Centre for Monitoring Indian Economy, Ministry of Statisticts and Programme Implememntation

devyanshi.b@thehindu.co.in

vignesh.r@thehindu.co.in

Published – October 01, 2025 07:00 am IST

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Sebi makes process of securities payout directly to client’s account mandatory

admin — Wed, 05 Jun 2024 11:58:08 +0000

The Securities and Exchange Board of India. File
| Photo Credit: Reuters

To enhance operational efficiency and reduce the risk to clients’ securities, markets regulator SEBI on May 5 decided to make the process of direct payout of such securities to the client’s account mandatory.

This will become effective from October 14, the Securities and Exchange Board of India (SEBI) said in a circular. Currently, the clearing corporation credits the pay-out of securities in the pool account of the broker, who then credits the same to the respective client’s demat accounts. Further, a facility of direct delivery to investors was introduced in February 2001.

After extensive deliberations with the stock exchanges, clearing corporations (CCs) and depositories, SEBI has decided that “the securities for pay-out shall be credited directly to the respective client’s demat account by the CCs”.

Moreover, clearing corporations should provide a mechanism for trading member (TM) or clearing members (CM) to identify the unpaid securities and funded stocks under the margin trading facility.

In case of any shortages “arising due to inter se netting of positions between clients” — internal shortages — SEBI suggested TM or CM should handle such shortages through the process of auction. Moreover, in such cases, the brokers should not levy any charges on the client over and above the charges levied by the clearing corporations.

In May 2023, SEBI specified various processes for handling clients’ securities with regard to pay-in and pay-out of securities. This was to protect clients’ securities and to ensure that the stock broker segregates securities of the client or clients so that they are not vulnerable to misuse.

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Global fund launches touch a record in China as yuan slumps

admin — Fri, 31 May 2024 06:58:35 +0000

Eleven funds, under the Qualified Domestic Limited Partner programme, have been launched so far this year. File
| Photo Credit: Reuters

Global fund launches in China have hit a record as a weakening yuan and fragile economy drive demand for foreign assets, in the latest sign of low confidence among domestic investors.

Eleven funds issued under the Qualified Domestic Limited Partner (QDLP) programme have been launched so far this year, according to data by Z-Ben Advisors, already outpacing the full-year number from any previous year.

Managers such as Blackstone, Bridgewater Associates, and Oaktree Capital Management have opened funds, though they did not disclose total fundraising.

The products, which raise money from high net worth and institutional investors and invest in overseas assets, are booming as Chinese markets flounder. The yuan is at six-month lows on the dollar, the stock market shows signs of fatigue after a rebound from 5-year lows struck in February and benchmark 10-year government bond yields have hit record lows.

“Investors’ demand for offshore products have been rising quickly this year due to a weak yuan and sentiment,” said Ivan Shi, head of research at Shanghai-based Z-Ben Advisors, adding alternative investments and foreign bonds are popular.

In April, Blackstone launched its first QDLP fund, channeling money to the firm’s Private Equity Strategies fund.

The initial sales target of $40 million was reached in less than two weeks, according to two people familiar with the matter. Blackstone declined to comment. Market participants say Chinese authorities are largely encouraging the sector and more products are on the way.

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