Despite volatility in the equity markets, inflows into mutual funds have led the sharp rise in the folios. The latest data from the Securities and Exchange Board of India (Sebi) show that mutual funds folios touched 5.2 crore mark in November. Folios into equity funds, which include equity-linked saving schemes (ELSSs), stood at 3.85 crore mark.
Mutual funds have seen consistent participation from retail investors in the past few months, irrespective of the market condition. Changing mindset of retail investors and success of investors awareness programmes have attracted people towards mutual funds, says industry participants.
As on November, total folios of the mutual fund industry stood at 5.20 crore, with the majority coming from equity, while those for debt-oriented schemes stood at 96.11 lakh.
“Previously, investors used to either redeem or wait for market to fall further, but miss opportunity of cost averaging. But maturity of investors and work from the industry on investors awareness programmes have helped the industry receive continuous flows through systematic investment plan (SIPs),” says a marketing head of a top mutual fund house.
The data from Association of Mutual Funds in India (Amfi) show that total amount collected through SIPs during November was Rs 3,884 crore.
The mutual funds industry currently have about 1.2 crore SIP accounts through which investors regularly invest. SIPs inflow volume per month now stands at Rs 3,500-4,000 crore from Rs 2,500 crore a year earlier.
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The latest data from Amfi show that net inflows into mutual funds in November stood at Rs 36,021 crore with most coming from income funds (Rs 18,306 crore). Equity funds witnessed net inflows of Rs 6,068 crore in November. In the current financial year, equity schemes have seen inflows of around Rs 36,585 crore.
“I think even as markets are down, many of the funds have continued to deliver better returns and investors have continued to stay invested. But we have to see how investors respond to further fall in markets and investments returns turning negative,” said the CEO of a company.