Mutual fund folios jump to record 7 crore

Driven by strong participation from retail investors, mutual fund (MF) houses have registered an addition of 1.6 crore investor accounts in 2017-18, taking the total tally to over seven crore.

This follows an addition of over 67 lakh folios in 2016-17 and 59 lakh in 2015-16. Folios are numbers designated to individual investor accounts, though an investor can have multiple accounts.

According to the data from the Association of Mutual Funds in India (Amfi) on total investor accounts with 42 fund houses, the number of folios rose to a record 7,13,47,301 at the end of March this year, from 5,53,99,631 at the end of March 2017, a gain of 1.59 crore.

Retail investor accounts -- defined by folios in equity, equity-linked saving schemes (ELSS) and balanced categories -- grew by over 1.5 crore to 5.94 crore during the period under review.

Overall, mutual funds have seen an infusion of Rs 2.72 lakh crore, while equity and ELSS alone attracted an impressive inflow of around Rs 1.7 lakh crore.

This inflow has helped in increasing the total assets under management by 26% to Rs 23.05 lakh crore at the end of the previous fiscal from Rs 18.30 lakh crore at the end of March 2017.

MF asset base from small towns up 38% in FY18

Smaller towns' asset base surged to Rs 4.27 lakh crore in 2017-18, up 38% from the preceding financial year due to a spirited investor awareness campaign by the industry and strong participation from retail investors. Mutual funds' assets under management (AUM) from B15 locations in the preceding fiscal were Rs 3.09 lakh crore.

Going by Amfi data, overall AUM of the mutual fund industry comprising 42 active players, surged 26% to Rs 23.05 lakh crore in March-end. Currently, B15 towns account for nearly 19% of the total assets of the industry.

About 62% of the AUM from B15 locations is in equity schemes. Top 15 cities or T15 have 36% of their total assets in equity.

B15 cities are those which are beyond the top 15 cities namely New Delhi (including NCR), Mumbai (including Thane and Navi Mumbai), Kolkata, Chennai, Bengaluru, Ahmedabad, Baroda, Chandigarh, Hyderabad, Jaipur, Kanpur, Lucknow, Panjim, Pune and Surat.

About 10% of the retail investors chose to invest directly, while 18.4% of HNI assets were invested directly.

Source: AMFI, PTI

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