In the last three months, the mutual fund industry have seen a tapering in incremental folio addition. In fact, the month on month addition in folios has nearly halved compared to October 2018. The industry has added 5.7 lakh new folios in December compared to 7.05 lakh folios in November and 11.5 lakh folios in October last year.
Equity folios halved too from 10.6 lakh folios in October to 4.91 lakh folios last month. Equity funds include pure equity, ELSS and balanced funds.
Folios in equity ETF (3.75%), gilt (3.41%) and liquid (2.58%) grew at the fastest pace last month. This is not surprising as equity ETF category received large inflows on account of CPSE ETF. Gilt category too saw some traction after the sharp decline in g-sec yields.
On a positive note, income funds reported a marginal increase in their folio counts, against the decline observed in the last few months. While income fund reported net outflow during the month, with macroeconomic variables turning favourable and no further expectation of rate hike in near term, the increase in investor folios suggests they may be slowly returning to this category.
Overall, all categories of funds reported a growth in their folios.
Industry folio data for month of December 2018
|
Category |
Folio as on December 2018 |
Folios as on November 2018 |
Absolute Change |
Change (%) |
|
Equity |
4,99,18,207 |
4,95,50,929 |
3,67,278 |
0.74% |
|
ELSS |
1,13,20,094 |
1,12,17,437 |
1,02,657 |
0.92% |
|
Balanced |
63,91,853 |
63,69,889 |
21,964 |
0.34% |
|
ETFs other |
8,59,734 |
8,28,690 |
31,044 |
3.75% |
|
ETFs gold |
3,27,447 |
3,23,709 |
3,738 |
1.15% |
|
Income funds |
97,45,123 |
97,43,278 |
1,845 |
0.02% |
|
Gilt |
66,249 |
64,066 |
2,183 |
3.41% |
|
Liquid |
15,57,258 |
15,18,087 |
39,171 |
2.58% |
|
Fund of funds investing overseas |
1,21,499 |
1,20,943 |
556 |
0.46% |
|
Total |
8,03,07,464 |
7,97,37,125 |
5,70,339 |
0.72% |
Source: SEBI
