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This is the fourth consecutive year when growth has been reported in folio numbers after a continuous five-year decline since the post-2008 global financial crisis till FY14.
Currently, the pace of equity folio addition has risen nearly five-fold compared to 2014-15.
The current fiscal also witnessed the fund management industry surpassing its previous equity folio high of 41.1 million in 2009-10.
“Interest in equity investments through mutual fund industry has grown tremendously over the last few years. In this growth, investors from smaller cities and towns (B-15) have participated very strongly. I believe, there is still large potential and that day is not far when investments in mutual funds will be part of everybody’s monthly wallet,” said Sundeep Sikka, chief executive officer of Reliance Nippon Life Mutual Fund.
During the long phase of 2009 to early 2014, the fund industry had witnessed closing of as many as 6,500 equity folios every day.
A Balasubramanian, CEO of Aditya Birla Sun Life Mutual Fund, said, “Acceptance level of mutual funds is on the rise in India. The credit goes to all the stakeholders of the industry — fund houses, regulator and distributors. The continuous investor awareness programmes by the industry is bearing fruits. But, we still need to go far as there is an immense potential in India's hinterland.”
At present, the total number of folios across mutual fund categories stand at 66.5 million. According to the sector’s 2025 vision, the fund industry, given the last few years’ growth trajectory, is aiming to reach an asset size of nearly Rs 95 trillion, while a folio count around 133 million.