February ended on a positive note for the Rs.32 lakh crore MF industry in terms of addition of new investors and distributors. While the industry has achieved pre-covid level in terms of addition of new distributors, it has added over 5 lakh new investors last month.
Here is what happened in the mutual fund industry in February 2021:
Unique investors and folios
- The MF industry has added 5.45 lakh new investors in February taking the total count of unique investors to 2.22 crore in February as against 2.17 crore in January
- The industry’s total folio count has risen to 9.62 crore in February from 9.52 crore in January, an increase of 10 lakh new folios
Redemption
- Overall, gross redemptions have come down to Rs.5.97 lakh crore in February from 6.83 lakh crore in January
- However, equity funds continue to witness net outflows for the eight consecutive month at Rs.4,534 crore while debt funds saw net inflows of Rs.1,734 crore
T30 vs B30
- Both T30 and B30 cities have witnessed a marginal growth in their assets
- AUM in T30 cities has risen by 3% to Rs. 26.20 lakh crore while assets in B30 cities have increased by 5% to Rs.5.44 lakh crore
- T30 cities account for 82% of the industry’s total AUM
- Folio count in both T30 and B30 cities has grown marginally
Average AUM per folio
- Average AUM per retail folio has increased to Rs.1.79 lakh in February from Rs.1.73 lakh in January
- Average AUM per folio of retail investors in B30 and T30 cities have also risen by 4% each to reach Rs.1.06 lakh and Rs.2.33 lakh, respectively
ARNs
- 1,112 individuals have joined the MF industry distribution business in February, the highest in the last 11 months
- 3,450 ARNs were renewed in February - 2,006 individual distributors, 167 corporates and 1,276 corporate employees
- Maharashtra has remained at the top position in terms of highest ARN and EUIN holders with 20.56% followed by Gujarat (11.01%) and Uttar Pradesh (8.26%)
