Investors seem to have stayed off credit risk funds following numerous credit events, indicating a sharp decline in their risk appetite
The defaults did have an impact though. Investor accounts in credit risk funds fell. But the increase in liquid funds and equity propped up the overall numbers
In June, the average AUM of credit risk funds stood at Rs 74,607 crore compared with Rs 77,685 crore a month ago.
On the whole, investor accounts of top 15 fund houses, based on the asset under management registered a 14 percent rise in FY19
Credit risk funds saw the highest drop of 11,800 folios in May.
Since April, SEBI has started disclosing folios of individual debt and equity categories such as overnight funds, long duration funds, low duration funds, corporate bond funds, multi-cap funds, small-cap, and large-cap schemes, among others.
Investors are investing despite the equity market grappling with volatility in the last fiscal
Folios are numbers designated for individual investor accounts, though one investor can have multiple accounts.
During the month under review, equity schemes, balanced funds and equity-linked savings schemes (ELSS) added a total of 10.6 lakh folios between them
Equity funds added 10.90 lakh accounts last month, taking the total equity fund folios to 4.81 crore
Liquid funds added 41,454 accounts last month. Fund managers attributed the addition in folios of liquid funds to a reversal of June outflows
MF industry recorded an addition of 10 lakh investor accounts in June, taking its total number of folios to an all-time high of 57.82 million, as per data on the SEBI.
Showing a growing traction for mutual funds among investors, the number of folios has grown by nearly 16 lakh in the first four months of the ongoing fiscal to a record 4.92 crore, primarily on account of participation from retail investors.
Equity mutual funds witnessed an addition of over 39 lakh investor accounts or folios in the first eleven months of the current fiscal, primarily on account of robust contribution from smaller towns.
Industry experts said growing participation from retail investors has led to a sharp increase in folios. Besides, optimism in investors too helped raise the number of investors' account in the equity segment.
Mutual funds posted 3.42% increase in retail folios in the quarter ended March 2015, following a 1.69% rise in the previous quarter: CRISIL
While making investments in Mutual Funds, one may find that one has numerous folio numbers across Funds. It would be worthwhile for investors to take stock of their holdings, check if there are numerous folios in the same fund and get the same consolidated into one single folio number for the Fund.