The latest AMFI data shows that the industry has added over 8 lakh new folios in B30 cities during lockdown i.e. April and May. The total folio count in B30 went up to 3.77 crore in May from 3.69 crore in March.
Similarly, the MF industry has added 5 lakh new folios during lockdown in T30 cities i.e. from 5.28 crore to 5.33 crore. This indicates that new folio addition in B30 cities is higher than T30 cities.
Jignesh Shah, President-South Gujarat IFA association attributed this to significant contribution from banks and NDs in B30 cities. He said, “Lockdown norms were not so strict in most B30 cities. Also, banks and national distributors were allowed to remain operational with less capacity. Also, many distributors continued their office in less affected cities like Bharuch, Navsari and Valsad due to fewer cases of coronavirus in these locations.”
AshutoshBishnoi, MD & CEO, Mahindra Manulife MF points out that many distributors in B30 cities relying on physical transactions have started using online platforms to execute MF transactions during the lockdown.
In addition, the recent market correction has also encouraged many investors to invest in equity funds.
