Equity mutual funds added more than 3000 folios per day since May

SEBI data shows that the industry has added 4.65 lakh folios in equity funds since May, reversing a trend of sharp deletion of folios. 

Investors are rushing to equity funds in hordes. Thanks to new fund launches and inflows in existing funds, equity funds have seen addition of 3045 folios per day since May 2014.

Reversing a consistent trend of folio depletion, the industry has added 4.65 lakh folios in equity funds since May, shows SEBI data. On an average, equity funds attracted 93186 new folios from May to Sept. The trend of new equity folio additions is increasing steadily each month consecutively.

The highest jump in new folio additions was in September when the industry added 2.43 lakh equity folios. There were five new closed end NFOs in September which mopped up Rs. 1,617 crore. Interestingly, a large part of the inflows came in existing funds which received Rs. 11,176 crore. 

Advisors say that the revival in equity markets is leading more investors to sing up for SIPs. They say that majority of advisors are recommending investors to invest in existing funds having a good track record. New funds too are getting their share of inflows. The BSE Sensex has risen 17% since April till now.  

Equity folios

Since May, the industry has launched 28 equity funds, majority of them being closed end funds, shows AMFI data. These 28 funds have collectively mopped up Rs. 5,187 crore. SEBI data shows that the industry has seen net inflows of Rs. 33,170 crore from May to September in equity funds. This includes inflows in new fund offers.

New fund offers