Inflows into mutual funds have led to a sharp rise in the folios. The latest data from the Securities and Exchange Board of India (Sebi) shows that, mutual fund folios crossed the 5-crore mark in October. The folios into equity funds which includes equity linked saving scheme (ELSS) stood at 3.79-crore mark.
In the last few years, there has been consistent rise in the number of folios in equity funds as inflows has risen largely due to the positive returns from equity funds compared with benchmark indices coupled with changing mindset of retail investors and success of investors awareness programs. As on October total folios for the mutual fund industry stood at 5.12 crore with most coming from equity, while debt oriented schemes saw its folios at at 95.29 lakh.
“Despite some volatility in Indian markets, we have seen continuous participation from investors. They have started coming through systematic investment plan (SIPs) rather than lump-sum investments and it has benefited them,”says a marketing head of top mutual fund house. The data from Association of Mutual Funds in India (Amfi) shows that, total amount collected through (SIPs) during October was R3,434 crore.
Indian mutual funds have currently about 1.16 crore SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. SIPs inflow volume now stands at R3,000-3,500 crore on monthly basis from R2,500 crore a year earlier. According to the data from Amfi, total SIP accounts as on March 2016 was at 98.57 lakh and over 73 lakh in March 2015.
The latest data from Amfi shows that, net inflows into mutual fund in the month of October stood at R32,334 crore with most coming from income funds at R52,125 crore. Equity funds continued to see net inflows of R8,688 crore in the month of October, 2016. In the current financial year, equity schemes have seen inflows of around R28,517 crore.
“In the last few days we have seen sharp correction in equity markets, we have to wait and see whether investors continuous to stay or redeem their money from mutual funds,”concluded a CEO on condition of anonymity.