The mutual fund industry of India has been boosted by a whopping increase in equity mutual fund folios, helping it add more than 5.7 lakh investor accounts in the December month. As in December, total mutual fund investor accounts stand at 8.03 crore. In November and October, the industry added 7.05 lakh and 11.5 lakh folios, respectively.
Equity folios whose different types include pure equity, balanced and ELSS funds have halved 10.6 lakh folios in October to 4.91 lakh folios in December. And an increase in the equity fund folios during the month is primarily attributed to investor’s perception of taking the mutual fund investment route as market fall is seen as an opportunity to invest their surplus wealth.
Further during the review period, there has been increase in the folios in equity ETF that registered increase of 3.5%, gilt funds (3.41%) and liquid funds (2.58%).
Other factor which fuelled folio increase in equity category is the huge inflow due to the CPSE ETF. Also, the gilt category saw some momentum driven by sharp fall in the g-security yields.
In contrast to the previous months, income funds also witnessed marginal increase in folio counts. Nonetheless on a net basis there has been reported outflow from the category. Further liquid funds saw the most outflows during the review month. In the debt funds there had been addition of 1,845 folio accounts during December of last year.
This story has not been edited by Topic Hunt (with the possible exception of the headline) and has been generated from a syndicated feed. (GoodReturns)