Unabridged report: MF industry adds 10 lakh folios in May 2017

According to the records of the market regulator SEBI, India’s mutual fund industry added over 10 lakh folios to its bag in May 2017. The markets saw the investors swarm MF folios, preceded by a substantial rise of investments in equity folios.  

The equity funds witnessed an increase of over 6.5 lakh folios in the month of May, increasing from 3.28 crore folios to 3.35 crore folios. The experts attributed the rise in MF folios to the growing interest of investors in equity schemes.

According to AMFI, the equity funds mopped up nearly Rs 10,300 crore during May 2017, remaining above Rs 10,000 crore level for the second consequent month. The AUM of equity funds was recorded as Rs 5.18 crore in May 2017.  

Moreover, ELSS funds saw an addition of nearly 90,000 MF folios in May, receiving about Rs 531 crore during the corresponding period despite the end of the tax season in March.

Balanced funds extended their positive momentum, adding 1.67 lakh folios to their stack, bringing in a net inflow of Rs 7,663 crore in May. While barring gilt, debt funds also added 1,41,000 folios to its bag. The hike in folios in this segment was attributed to a rise in income funds. Income funds added over 1,20,483 folios and liquid funds added over 21,128 folios to its stack during the month. 
    
ETFs witnessed a drop in its folio count during the month as a probable impact of low performance of indices. Equity ETFs lost 2,363 folios during the month, with inflows lowering by Rs 584 crore in May. Gold ETFs, also witnessed a decline of Rs 71 crore in May, despite making an exception and adding nearly 4,700 folios to its bag. 
       
While the fund of funds saw a continuous erosion in folios during the period. Folios in overseas fund of funds category reduced by 2,070. 

The AUM of 39 active MF AMCs of the country stood at Rs 19.03 lakh crore in May 2017 against Rs 19.26 lakh crore in the previous month. The total AUM declined marginally as an impact of the redemption in liquid and money market instruments.