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  • MF News MF industry adds 77 lakh retail folios in FY 2016-17

    MF industry adds 77 lakh retail folios in FY 2016-17

    Equity funds saw the highest addition in folios (48 lakh), followed by debt funds (16 lakh) and balanced funds (10 lakh).
    Team Cafemutual Apr 11, 2017

    The mutual fund industry has added a whopping 77 lakh folios in FY 2016-17, shows the latest SEBI data. That means, the MF industry has added close to 6.50 lakh folios each month on an average in FY 2016-17.

    Overall, the retail folios (across all categories) increased from 4.76 crore in March 2016 to 5.55 crore in March 2017, primarily due to a healthy growth in retail equity folios.

    Equity

    Despite volatility in markets through the year, investors continued to pour money in equity funds. The total folio count of equity funds including ELSS, went up by 48 lakh from 3.60 crore in March 2016 to 4.08 crore in March 2017. In March 2017 itself, over 14 lakh equity folios were added. AMFI data shows that equity funds have mopped up close to Rs. 70,300 crore in FY 2016-17.  As a result, the AUM of equity funds crossed Rs. 5.43 lakh crore in March 2017.

    Balanced Funds

    Balanced funds continue to gain popularity among investors as the category saw an addition of over 10 lakh folios with net inflows of Rs.36,610 crore during the year.  in fact, the category has added over 3 lakh folios in the month of March 2017.

    After the changes in tax structure of debt funds, many investors rushed to balanced funds.

    As a result, the category has witnessed a massive jump of 116% in the AUM, which went up from Rs. 39,150 crore in March 2016 to Rs. 84,763 crore in March 2017.

    Debt funds

    Besides equity, debt funds have also seen good traction as the total folio count in this category increased by over 16 lakh in FY 2016-2017, largely due to addition in income fund folios. AMFI data shows that retail debt assets grew by Rs. 2.92 lakh crore i.e. from Rs. 7.82 lakh crore in FY 2015-16 to Rs.10.74 lakh crore in FY 2016-17. The total folio count in debt funds increased to nearly 1 crore in March 2017 from 83.24 lakh in March 2016.

    Among debt funds category, income funds have added over 12 lakh folios while liquid funds added over 4 lakh folios in the last fiscal.

    ETFs

    ETFs, which track the equity indices, are increasingly getting popular among retail investors. Folio count in this category has risen from 2.72 lakh in March 2016 to 5.51 lakh in March 2017. The AUM also grew from Rs. 16,063 crore in March 2016 to Rs. 44,436 crore in March 2017 infusing an inflow of Rs. 24,054 crore.

    However, gold ETF folios dipped by close 61,000, the highest decline compared to other categories, i.e. from 4.26 lakh in March 2016 to 3.64 lakh in March 2017. The AUM of this category too witnessed a decline from Rs. 6346 core to Rs. 5480 crore.

    Overseas fund of funds

    Barring gold ETFs and fund of funds investing overseas, all other categories recorded a growth in folios. This category is seeing continuous erosion in folios. Folios in overseas fund of funds category dropped by 16,290. 

     

    Folio count in FY 2016-17

    Category

    Folios as on March 2016

    Folio as on March 2017

    Change

    Equity

    28746591

    32374285

    3627694

    ELSS

    7278471

    8451926

    1173455

    Balanced

    2490458

    3548912

    1058454

    ETFs other

    271700

    551017

    279317

    ETFs gold

    425914

    364110

    -61804

    Income funds

    7891468

    9124562

    1233094

    Gilt

    65164

    86182

    21018

    Liquid

    367194

    788860

    421666

    Fund of funds

    126016

    109726

    -16290

    Total

    47663024

    55399580

    7736556

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Source: SEBI

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