The
higher interest rate regime brought debt funds in the spotlight last year with
the category adding more than 8.46 lakh folios. Out of this, 77% or more 6.50
lakh addition in folios was seen in the retail category with their assets under
management increasing from Rs 22005 crore in March 2012 to Rs 28781 crore in
March 2013. FMPs and bond funds found a lot of favour with retail investors.
Liquid
funds which are popular among corporates and banks, are finding acceptance
among retail investors too. An analysis of AMFI data shows that liquid fund
category has seen an increase of 4215 new retail folios in FY12-13. The share
of retail AUM in liquid funds is increasing steadily over the last two years
from Rs 690 crore in March 2011 to Rs 1268 crore in March 2013. The HNI category (those who invest Rs 5 lakh
and above), has seen an increase of 3833 new folios last year. Corporate folios
too have increased by 4932 during the same period.
Anticipation
of softening interest rate regime and the resultant benefit in gilt funds resulted
in an increase of 29574 folios last year with retail folios accounting for 86%
(25541) share of this increase. There are 63027 gilt fund folios, up 88% from
33453 as on March 2012.
While
2012 has been a good year for debt funds, equity funds bore the brunt of heavy
redemptions. As markets went up in 2012, retail investors cashed out of equity
funds, evident by 12% or more than 44 lakh drop in retail folios in FY 12-13.
Out of this, nearly 53% or over 23 lakh retail folios were lost from September
2012 till March 2013.
The industry lost 12247 retail folios each day in FY 12-13. Apart from redemptions, fund officials say that some of the drop in equity folios has been due to folio consolidation and scheme mergers.
