Mutual fund Industry adds 529,633 folios in June: Here're the details

The mutual fund (MF) industry saw 529,633 of new folios getting added in June, which took the total industry tally to 83.8 million folios. Folio numbers are linked to individual investor accounts.

However, an investor can have multiple accounts. The majority of folio additions were seen in open-end equity schemes. In June, the folio count in this category was up by 450,024, rising to 58.8 million folios. 

"Investor appetite has improved for equities with election-linked uncertainty now out of the way," said a fund manager. Meanwhile, folios were up by just 102,110 in open-end debt schemes. According to industry officials, investors have been closing accounts in the credit risk funds amid fears of rating downgrades and credit events. 

At the end of June, the folio count for credit risk funds stood at 554,021, from 564,179 in May. In June, credit risk funds saw the net outflow of Rs 2,694 crore. Overall, debt schemes witnessed an outflow of Rs 1.7 trillion; it was largely driven by quarter-end investor pullouts in liquid funds. On the other hand, equity flows surged 42 per cent higher to Rs 7,663 crore in June.