Investors continued to cash out of equity funds in October. Equity fund folio count dipped by five lakh as the S&P BSE Sensex rose more than 1700 points to cross 21000 level in October.
The industry saw net outflows of Rs. 9898 crore from April till October from equity funds. The continuous decline in folios of equity funds has been a cause for concern for the industry for some time now. Equity funds have lost more than 25 lakh folios from April till October. Equity funds constitute 75% of the total 4.07 crore folios in the industry.
Brijesh Damodaran of Zeus Wealthways feels that it is a good point to enter the markets. “It’s all about the perception of investors. At every market upside investors are moving out. We are recommending to enter the markets at this juncture.”
Debt funds on the other hand are continuing to attract investors. The industry has seen an increase of four lakh folios in debt funds in the past seven months. Debt funds have seen net inflows of Rs. 1.14 lakh crore during the same period. In October, the industry added 39692 folios in debt funds.
|
Category |
Folios as on Oct 2013 |
Folios as on Sep 2013 |
Change |
|
Debt |
6561078 |
6521386 |
39692 |
|
Equity |
30622021 |
31169676 |
-547655 |
|
Balanced |
2708582 |
2743248 |
-34666 |
|
ETF |
690859 |
697856 |
-6997 |
|
Fund of funds investing overseas |
174171 |
175268 |
-1097 |
|
Total |
40756711 |
41307434 |
-550723 |
|
Source : SEBI |
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