 "MFs add 450,000 investor accounts in August; debt schemes gain traction")
The mutual fund industry added 4.5 lakh investor accounts in August, taking the total tally to 9.25 crore, primarily on account of contribution from debt schemes.
Market experts said that the addition of folios suggests that investors were undeterred by the market volatility.
Besides, it indicates their understanding of the market risks associated with the mutual fund schemes, they added.
According to data from the Association of Mutual Funds in India (Amfi), the number of folios with 45 fund houses rose to 9,25,70,743 at the end of last month from 9,21,05,737 at the end of July.
The sector added 5.6 lakh investors' accounts in July, 5 lakh in June, 6.13 lakh in May and 6.82 lakh in April.
Of the total new folios last month, more than 2 lakh were added in debt funds.
Folios are numbers designated to individual investor accounts. An investor can have multiple folios.
The number of folios under equity and equity-linked saving schemes rose by 34,715 in August to 6.38 crore.
Debt schemes folios count went up by 2.34 lakh to 71.2 lakh. Barring overnight, long duration, credit risk and gilt funds, all categories in debt funds witnessed growth in folios.
Liquid funds added 61,526 folios in August, followed by corporate bond funds (Rs 37,800), short duration (Rs 34,180) and banking and PSU (public sector undertaking) funds (Rs 21,101).
Overall, investors pulled out over Rs 14,500 crore from various mutual fund schemes last month.
Debt-oriented schemes witnessed a net outflow of Rs 3,907crore in August, after recording net inflows for four months in a row. The outflow was largely on the back of a significant pullout from overnight and liquid fund categories.
The equity mutual funds saw an outflow for the second consecutive month to Rs 4,000 crore in August, primarily on profit-booking by investors.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app