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  • MF News Overnight funds and long duration funds see highest growth in folio count in FY 24

    Overnight funds and long duration funds see highest growth in folio count in FY 24

    Among debt funds, liquid funds have the highest number of folios.
    Team Cafemutual Jun 21, 2024

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    In an interesting trend, AMFI data shows that two fund categories with opposite duration - Overnight funds and long duration funds recorded the highest growth in folio growth in both absolute and percentage terms.

    The data shows that the overnight funds added over 2.70 lakh folio to reach 9 lakh in FY 24 from 6.28 lakh in FY 23. On the other hand, long duration funds saw the total number of folios increase from 45,500 in March 2023 to 65000 in March 2024. Both the categories of funds saw their folio count grew by over 40% in one year.

    Next was gilt fund, which recorded a 6% increase by adding over 10,000 new folios last year to reach folio count of 1.87 lakh.

    Among debt funds, liquid funds command highest number of folios with a count of 17.82 lakh. Overnight funds and low duration funds followed liquid fund for second and third position, respectively in terms of folio count.  Low duration funds had 8.78 lakh folios in FY 2024.

    Fund categories which recorded the highest decline in number of folios were low duration funds, corporate bond funds and short term funds.

    Overall, the total number of debt folios increased marginally from 71.60 lakh folios from March 2023 to 71.65 lakh folios in March 2024.

    Let us look at the table (in absolute terms) to know more:

    Scheme Type

    No. of Folios (Mar 2024)

    No. of Folios (Mar 2023)

    Change

    % change

    Overnight Fund

    900146

    628550

    271596

    43.21

    Long Duration Fund

    64858

    45546

    19312

    42.4

    Gilt Fund

    186552

    176253

    10299

    5.84

    Liquid Fund

    1782854

    1773500

    9354

    0.53

    Money Market Fund

    430626

    422082

    8544

    2.02

    Ultra Short Duration Fund

    633208

    633103

    105

    0.02

    Gilt Fund with 10 yr Constant Duration

    38142

    42565

    -4423

    -10.39

    Medium to Long Duration Fund

    100915

    106926

    -6011

    -5.62

    Dynamic Bond Fund

    220569

    229940

    -9371

    -4.08

    Floater Fund

    215735

    236780

    -21045

    -8.89

    Medium Duration Fund

    230314

    256052

    -25738

    -10.05

    Credit Risk Fund

    208971

    246438

    -37467

    -15.2

    Banking and PSU Fund

    257714

    297318

    -39604

    -13.32

    Short Duration Fund

    456155

    507214

    -51059

    -10.07

    Corporate Bond Fund

    560652

    617379

    -56727

    -9.19

    Low Duration Fund

    877506

    940074

    -62568

    -6.66

     

    Let us look at the table (in percentage terms) to know more:

    Scheme Type

    No. of Folios (Mar 2024)

    No. of Folios (Mar 2023)

    Change

    % change

    Overnight Fund

    900146

    628550

    271596

    43.21

    Long Duration Fund

    64858

    45546

    19312

    42.4

    Gilt Fund

    186552

    176253

    10299

    5.84

    Money Market Fund

    430626

    422082

    8544

    2.02

    Liquid Fund

    1782854

    1773500

    9354

    0.53

    Ultra Short Duration Fund

    633208

    633103

    105

    0.02

    Dynamic Bond Fund

    220569

    229940

    -9371

    -4.08

    Medium to Long Duration Fund

    100915

    106926

    -6011

    -5.62

    Low Duration Fund

    877506

    940074

    -62568

    -6.66

    Floater Fund

    215735

    236780

    -21045

    -8.89

    Corporate Bond Fund

    560652

    617379

    -56727

    -9.19

    Medium Duration Fund

    230314

    256052

    -25738

    -10.05

    Short Duration Fund

    456155

    507214

    -51059

    -10.07

    Gilt Fund with 10 yr Constant Duration

    38142

    42565

    -4423

    -10.39

    Banking and PSU Fund

    257714

    297318

    -39604

    -13.32

    Credit Risk Fund

    208971

    246438

    -37467

    -15.2

     

    Chennai MFD Chokkalingam Palaniappan from Prakala Wealth believes that anticipation in interest rate cut is the primary reason for the popularity of long duration funds. Also, many investors use them for STPs.

    Delhi MFD Retd. Col. Sanjeev Govil of Hum Fauji Initiatives also echoed a similar sentiment. He said, “For a long time now, investors are anticipating a rate cut from the US federal reserve due to which they are gravitating towards long duration funds for better returns.”

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