SEBI data on mutual fund folios shows them to be at a new high. With the mutual fund industry adding 3.76 lakh folios last month, the total folio count in the asset management industry has surpassed the March 2010 peak. With 4.84 crore folios at the end of May-2016, the industry has beaten the earlier record of 4.81 crore folios. Folio data shows that retail investors prefer open ended schemes to close ended ones and equities to debt. At the end of May-16, the industry had 4.58 crore folios in open-ended schemes, 0.25 crore folios in close-ended schemes and less than 12,000 folios in interval schemes. Out of the total 4.84 crore folios, income/debt-oriented products, account for 0.86 crore accounts. A substantial portion of folios i.e. 3.64 crore understandably belong to growth/equity oriented schemes. Folios in balanced schemes, which are hybrid products, are 25.5 lakh, a fraction of the equity folios. Lastly, exchange traded funds or ETFs have about 7 lakh folios.
Over the last one year (May-16 vs May-15), overall folio count has risen by 60 lakh (14.1 per cent). Income/debt product folios have risen 19.4 per cent. Equity MF folios have seen a growth of 13 odd percent. A large portion of equity MF folio additions can be attributed to the growing popularity of SIPs among retail investors.
An analysis of March 2010 folio situation shows that equity MF folios accounted for as high as 85 per cent of the total pie. The proportion is actually down today to 75 per cent. Investors have pumped in ₹9,100 crore into equity MFs in the first two months of the new financial year that started on April 1, 2016. This comes on top of the ₹74,026 crore net inflows in FY16 and ₹71,029 crore in FY15.
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