Stocks

With 11 lakh addition, MF folios hit all-time high

Our Bureau Mumbai | Updated on January 11, 2018

MFs

Mutual funds’ efforts to rope in investors, bullish sentiment help

Riding on the bullish trend, the mutual fund industry has added 11 lakh folios in June taking the total folio count of the industry to an all-time high of 5.82 crore, according to the Securities and Exchange Board of India data.

Apart from the advertisement blitz by the Association of Mutual Funds of India, efforts by individual mutual funds to rope in investors in balanced funds was one of the reasons for the sharp jump in folio addition. The bullish trend in the equity market also attracted investors into equity schemes.

According to SEBI, equity mutual funds added over 7.83 lakh folios in the last month taking the total number of folios to a record high of 3.42 crore in June.

Since April 1 this year, 47.04 lakh fresh folios (individual accounts) were opened, of which 30.42 lakh is from equity oriented schemes.

In search of higher returns

Rahul Parikh, CEO, Bajaj Capital, said inflows in equity mutual fund schemes have been robust of late as investors chase higher returns in the wake of lower yields from fixed income instruments and poor performance by realty and commodities (gold).

The net inflows in Q1 of FY18 were about ₹28,300 crore compared to ₹9,480 crore in the same period last year.

Earlier, AMFI has said inflows into equity funds touched ₹7,400 crore in June even as the overall assets under management of mutual funds crossed the magic figure of ₹20 lakh crore.

Another fund in the equity category, equity-linked savings schemes (ELSS) added 90,000 investor accounts in June with net inflow of close to ₹711 crore. Balanced funds, too, continued to be investors’ favourite. This category added over 1.90 lakh folios last month. Balanced funds have seen fresh addition of 3.58 folios this fiscal.

Debt funds added 70,000 investors, while income funds added nearly 50,000 folios. Liquid funds, which are largely used by corporates to park surplus cash, added nearly 20,000 folios. Gilt funds that had taken a back seat in the last few months, too, garnered interest last month. This category witnessed an addition of 2,200 investor accounts in June.

The uncertainty over gold returns resulted in the number of folios of gold ETFs to fall by 4,250 and outflow of ₹81 crore during the month.

Published on July 12, 2017

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