Inflows in existing funds coupled with lower redemptions and new fund launches helped the industry add 1.28 lakh folios in equity funds in August.
Thanks to the bull run and healthy inflows in equity funds, the mutual fund industry has managed to grow its investor base in equity funds by adding over 1.28 lakh folios in August. The industry clocked a record gross sales of over Rs. 9,800 crore in equity funds in August. The S&P BSE Sensex went up by 743 points in August.
The industry has added close to 2.22 lakh folios in equity funds since May 2014.
Existing equity funds saw a net inflow of Rs.8,600 crore whereas new funds mopped up Rs. 1,200 crore in August. This was largely due to lower redemptions and fresh inflows in existing as well as new schemes.
The total investor count in equity funds stands at 2.94 crore now. This is something to cheer for the industry as it was seeing continuous erosion of folios, especially from equity funds, over the last couple of years.
The latest SEBI data shows that the industry has added over 1 lakh folios across all scheme categories in August 2014. The folio count has increased to 3.92 crore in August, from 3.91 crore in July. Likewise, balanced funds saw a marginal increase of 11,000 folios in August.
Meanwhile, the industry has lost close to 26,000 folios in debt funds due to revision in tax structure of debt mutual funds. While gilt funds have lost over 900 folios, liquid funds added 3200 folios in August.
