Equity mutual funds witnessed an addition of over 43 lakh investor accounts or folios in 2015-16, primarily on account of robust contribution from smaller towns.
In comparison, equity mutual funds (MFs) added 25 lakh folios in the preceding fiscal.
Folios are numbers designated for individual investor accounts, though one investor can have multiple accounts.
Growing participation from retail investors, especially from small towns, huge inflows in equity schemes and several measures taken by Sebi have led to sharp increase in folios, Sebi Chairman U K Sinha had said last month.
The regulator has given extra incentives for those expanding into smaller cities.