The mutual fund industry lost more than one lakh folios from April till June 2013, thanks to the unabated redemptions from equity funds.
SEBI data shows that the industry saw a depletion of 1.13 lakh folios from both equity funds and ELSS. Equity and ELSS saw a net outflow of Rs 2756 crore. Much of this outflow happened in May when the industry saw net outflow of Rs 2910 crore as the markets inched up. However, the pace of redemptions slowed down in June as the markets went down. Equity funds saw gross redemptions of Rs 6002 crore in May which came down to Rs 2243 crore in June. The slowdown in redemptions resulted in a net inflow of Rs 937 crore in June in equity funds.
The trend was similar in exchange traded funds. Equity ETFs lost 16314 folios while Gold ETFs lost 13308 folios. Fund of funds which invest overseas too saw a depletion of 1109 folios. Balanced funds too lost 31492 folios in April – June 2013.
The volatility in markets is keeping investors stick to debt funds. Debt funds recorded net inflows of Rs 98875 crore between April-June and added 75317 folios. The mutual fund industry has 4.18 crore folios as on June 2013 with average assets under management of Rs 8.62 lakh crore.
