Mutual funds continued to see an increase in folios in the first month of the current financial year. The latest data from Securities and Exchange Board of India (Sebi) shows in April, the mutual fund industry added 4.08 lakh folios. Market participants attribute the rise in folios to strong performance of equity funds and steady inflows due to systematic investment plans (SIPs).
The Sebi data also shows that equity mutual funds added 1.58 lakh folios in equity oriented schemes during April 2016. As on April, total folios of equity-oriented schemes stands at 3.61 crore, while the overall mutual fund industry’s was at 4.8 crore.
Jimmy Patel, CEO at Quantum Asset Management Company (AMC), says: “Investors are coming into equity funds as they are seeing positive returns. Even during volatile times, investors have continued to invest through SIPs and its very mature move from the investors.” In the last few months barring one month in March, equity funds have seen net inflows.
Even the numbers show that investors have not been dismayed by the inconsistent equity markets and there has been consistent rise in the SIPs. “Last year, average inflows through SIPs were Rs2,000 crore, which has increased to Rs3,500 crore every month, and that’s the major reason why the industry is seeing new inflows month after month,” says market players. The Sebi data also shows that debt funds saw their folios rise by 2.25 lakh in Arpil to over 85 lakh.
Equity mutual funds continued their positive momentum and saw net inflows of Rs4,042 crore in April. According to the data from Association of Mutual Funds in India, the mutual fund industry saw net inflows of Rs1.70 lakh crore in April 2016, due to the inflows into liquid and income funds.