Equity MFs favoured over debt funds despite negative stock mkt returns

The number debt scheme folios down 6% in 12 months to September 2022, equity MF folios have surged 21%; Passive schemes, which includes ETFs and index funds, have grown the fastest at 56%

Despite negative returns generated by the stock markets over the past one year, investors have continued to favour equity over debt mutual funds (MFs). The number of folios for debt schemes has declined 6 per cent in the 12-month period ended September 2022. On the other hand, equity scheme folios have surged 21 per cent. Passive schemes, which includes exchange traded funds (ETFs) and index funds, have grown the fastest at 56 per cent.

Overall, MFs have added 24 million new folios net in the past one year with total unique investor count surging 31 per cent to 36 million,