MFs lose 1.9 million equity folios in first half

Amid uncertain economic situation, investors - mainly retail, choosing to stay away from equity investments

India's mutual fund industry has lost a whopping 1.9 million equity folios in the first half of the current calendar year.

At a time when stock markets continue to remain volatile amid uncertain economic situation,  investors - mainly retail are choosing to stay away from equity investments.

Compared to corresponding period in the previous year shrinking of equity investors' base is sharper. The January -June of last year had witnessed closures of around 1.5 million equity accounts.

Though the immediate past month was relatively better against the previous months in terms of inveators exiting their equity investments, the overall scenario continues to be worrisome for the fund houses.

Currently industry offers around 300 equity schemes, managing just a fifth of sector’s total assets under management at around 1.75 lakh crore.