Equity folios have risen by 5.51 lakh during the same period, shows the latest SEBI data.
Investors are rushing to equity funds even as the markets reach new highs.
Investors poured in Rs. 39,216 crore in equity funds from April till October 2014, shows the latest SEBI data. The BSE Sensex has shot up 24% during the same period.
Thus, the average assets under management of equity funds went up from Rs. 1.92 lakh crore in April to Rs. 2.83 lakh crore due to both mark to market gains and inflows.
Reflecting the positive sentiment among investors, equity funds saw an addition of 5.51 lakh folios. The total number of equity folios went up from 2.32 crore in April to 2.38 crore in October 2014.
However, ELSS saw depletion of more than four lakh folios during the same period. Financial advisors say that investors tend to redeem their investments as soon as the three year lock in period gets over which caused depletion in ELSS folios.
Closed versus open end funds
SEBI data shows that investors have stuck to the time tested open end funds when it came to participating in equity markets. Out of the Rs. 39,216 crore net inflows received by equity funds, 86% or Rs. 34,106 crore came in open end fund equity funds while closed end equity funds received Rs. 5,109 crore. From April till September, fund houses have launched 21 closed end equity funds. The total number of closed end equity funds went up to 45 in October from 24 in April.
Debt
Debt funds received net inflows of Rs. 1.14 lakh crore from April till October. The assets under management in this category went up from Rs. 7.16 lakh crore to Rs. 7.52 lakh crore during the same period. A large chunk these inflows came in liquid funds which received Rs. 1.31 lakh crore. Debt funds added 1.60 lakh folios.
Balanced funds
Balanced funds added 48,330 folios and the assets under management in this category rose from Rs. 13,376 crore in April to Rs. 19,211 crore in September 2014. There are 24 balanced funds in the industry. Value Research data shows that balanced funds, which invest 65% of their net assets in equities, have delivered 41% return over a one year period.
Fund of funds
The folios in this category declined by 16,095. There are 31 fund of funds in the industry which collectively manage Rs. 2,855 crore. Fund houses had recently come out with Europe focused funds which took a beating due to the crisis surrounding the European economy.
ETFs
Investors continued to shun gold as the category delivered -15% return over a one year period, shows Value Research data. Thus, Gold ETF folios dropped by 19,988.
ETFs which track the equity indices added 18,292 folios.
All in all, the industry added 5.42 lakh folios between
April-October 2014 due to rise in equity, debt and balanced fund folios. The
assets under management of the industry rose from Rs. 9.38
lakh crore in April to Rs. 10.70 lakh crore in October 2014.
