Five crore MF folios already there--do you have yours?

Equity as an asset class is finally fast catching up with retail investors in India. More and more retail investors are investing in equity markets as indicated by the recent data released by Association of Mutual Funds in India (AMFI). Mutual Fund (MF) houses have registered more than 29 lakh investor accounts in the first six months alone of the current fiscal. The total investor accounts now has surpassed an impressive 5-crore mark.

The year 2015-16 was a phenomenal year which saw 59 lakh new folios being added. The current year’s surge in folios can be attributed to the robust contribution pouring in from smaller cities and towns.

The participation in equity markets via mutual fund  route is definitely on rise with more and more investors choosing the systematic investment route for participation. In the month of September alone, the equity mutual funds saw inflows of almost Rs 3,700 crore in September. With such inflows the total amount of inflows in to the equity mutual funds now stand at Rs 22,000 crore in the first six months of current fiscal.

September data suggests the sixth straight month of positive inflow in equity schemes. Month of March saw a pull out of funds to the tune of Rs 1,370 crore. The inflow in equity markets is due to several factors including good corporate performance and government reforms being implemented which have given investors across the board confidence in the asset class. Equity as an asset class is also gaining due to poor performance of real estate in recent past. Sluggish trend in real estate has diverted several investors to the equity markets.