More than 25 lakh equity folios have dropped in the last six months when the Sensex gained more than 2000 points.
Folios of equity funds shed at the fastest pace in the last six months with industry reporting a closure of 25.77 lakh investor accounts. While the number of folios has dropped, the equity funds AUM increased to Rs 1.86 lakh crore in October 2012 from Rs 1.86 lakh crore in April 2012. So while the equity markets have gone up, the industry recorded net outflow of Rs 9258 crore as investors booked profits.
After reaching a peak of 4.11 crore folios in March 2009, equity folios have been falling relentlessly since 2009. The latest data published by SEBI for the period April 2012-October 2012 shows that the industry saw a drop of 25.77 lakh folios. The total investor count in equity funds stand at 3.50 crore now.
While AMCs are witnessing redemptions in equity funds, the debt category is seeing a healthy rise in investor accounts. More than five lakh folios have been opened in debt funds in the last six months. “The good thing is that people are shifting towards fixed income. Investors have booked profits once the Sensex reached 19000,” said a sales head of a bank sponsored fund house.
