Continuing their winning run, mutual funds added nearly 3.40 lakh folios in May. Folios of equity schemes surged by as much as 2.90 lakh, show latest Sebi data. While total folios of equity-oriented schemes stood at 3.22 crore in May, for the overall industry, the figure was 4.23 crore.
G Pradeepkumar, CEO, Union KBC Asset Management Company, said: “Investors are looking to invest with a medium-to-long-term perspective… They are not worried about short-term volatility and are buying at every dip, which is a positive sign.” Despite weak equity markets, investors have flocked to mutual funds, especially equity schemes.
Market participants attribute the firm participation to a series of NFOs in the past few months. In May, equity schemes saw net inflows for the 13th consecutive month, while average assets under management of the industry touched the 12-lakh-crore mark.
Equity mutual funds saw net inflows of R9,850 crore in May, according to Amfi data. Equity linked saving schemes also saw inflows of R226 crore in May.
Market participants say huge inflows into equity funds were also due to the launch of a few new closed-ended schemes.
“If there are positive returns, investors will surely come to mutual funds. Though markets have turned volatile in the last few months, investors have seen positive returns in the last one year. We might continue to see steady flow despite sharp corrections in the market,” said a CEO of a top fund house.
Even debt funds saw a rise in folios in May. Sebi data income and debt-oriented schemes added over 32,000 folios.
However ETFs continued to lose folios, largely due to redemptions from gold ETFs.