According to the latest SEBI data, the mutual fund industry has witnessed an addition of over 10 lakh folios in May. The growth in MF folios is largely attributed to the healthy additions in equity folios.
SEBI data shows that equity funds have added more than 6.5 lakh folios in May. Rising interest in equity schemes because of their recent good run, the folio count went up from 3.28 crore to 3.35 crore. AMFI data shows that equity funds have mopped up close to Rs. 10,300 crore during the month. Also, AUM of equity funds stood at Rs. 5.18 crore in May.
ELSS funds witnessed an addition of around 90,000 MF folios inspite of the fact that the ‘tax season’ ended in March. AMFI data shows that ELSS received net inflows of close to Rs. 531 crore in May.
Balanced funds continued the positive momentum by adding 1.67 lakh folios. The category received net inflows of Rs7,663 crore in May.
Folio count in May 2017
|
Category |
Folio as on April 2017 |
Folios as on 2017 |
Change |
|
Equity |
3,28,59,180 |
3,35,10,640 |
6,51,460 |
|
ELSS |
85,51,753 |
86,39,424 |
87,671 |
|
Balanced |
37,03,908 |
38,70,966 |
1,67,058 |
|
ETFs other |
5,26,949 |
5,24,586 |
-2,363 |
|
ETFs gold |
3,60,725 |
3,65,366 |
4,641 |
|
Income funds |
91,41,731 |
92,62,214 |
1,20,483 |
|
Gilt |
85,354 |
85,303 |
-51 |
|
Liquid |
8,04,604 |
8,25,732 |
21,128 |
|
Fund of funds |
1,07,894 |
1,05,824 |
-2,070 |
|
Total |
5,61,42,098 |
5,71,90,055 |
10,47,957 |
Source: SEBI
ETFs, which track the equity indices, witnessed a drop in its folio count this month. Experts attributed this decline to the underperformance of indices. The category lost 2,363 folios in May. Equity ETFs however witnessed an inflow of Rs. 584 crore last month.
Although gold ETFs saw an addition of folios close to 4,700, it witnessed a decline of Rs. 71 crore in its monthly inflows.
Barring gilt, debt funds too have seen good traction as the total folio count in this category increased by over 1,41,000 in May 2017, largely due to addition in income fund folios. Income funds added over 1,20,483 folios while liquid funds added over 21,128 folios during the month. Income funds saw an addition of Rs. 5,124 crore in inflows while liquid funds witnessed a massive outflow of nearly Rs. 64,700 crore in a month. Experts believe, the redemption in liquid instruments is mainly due to corporates pulling out their short-term investments in it.
The fund of funds category is seeing continuous erosion in folios. Folios in overseas fund of funds category dropped by 2,070.
The AUM of 39 active MF AMCs in the industry stood at Rs. 19.03 lakh crore in May as against Rs.19.26 lakh crore in April. The total AUM witnessed a marginal decline mainly due to the redemption in liquid and money market instruments.
