NEW DELHI: Showing a growing traction for mutual funds among traders, the selection of folios has grown via over 66 lakh within the first six months of the current fiscal on account of sturdy participation from retail traders.
According to data from the Securities and Exchange Board of India (Sebi) on total investor accounts with 42 energetic fund properties, the selection of folios rose to a document 62,049,189 on the end of September, from 55,399,631 in March-end, a acquire of 6.65 million or 66.5 lakh.
Folios are numbers designated to individual investor accounts, even though one investor may have more than one accounts.
"The rise in number of folios has mainly come from the retail category, which can be seen by growth in folios in equity, balanced and debt segments," BNP Paribas Mutual Fund Chief Investment Officer Ritesh Jain mentioned.
"Besides, low interest has been attracting investors into mutual funds," mentioned Vidya Bala, head of mutual fund analysis at FundsIndia.com.
Participation in MFs from retail traders, especially from small cities, has been growing.
Further, measures taken via markets regulator Sebi comparable to giving extra incentives for fund properties expanding to smaller towns, coupled with increasing investor awareness programmes via Asset Management Companies (AMCs) and trade frame Amfi to extend penetration of mutual funds also helped.
Retail investor accounts--defined via folios in equity, equity-linked saving schemes (ELSS) and balanced categories-- grew via over 61 lakh to greater than 5 crore during the period under assessment.
Overall, mutual funds have observed an infusion of Rs 2 lakh crore, whilst equity, ELSS and balanced classes together attracted an impressive inflow of over Rs 1.27 lakh crore.
Going forward, Atul Kumar, head of equity funds at Quantum Mutual Fund, mentioned that the fund house remain positive on Indian equities over longer term.
"High GDP growth relative to rest of the world, increasing consumption and likely investment in infrastructure are key drivers for equity returns. However, we are cautious on equities in the near term. Markets have been running up which is not supported by earnings growth. Most sell side brokers continue to revise their earning estimates downward," he added.
A mutual fund swimming pools the property of its traders and invests the cash on behalf of them. It supplies numerous investment tools like stocks and bonds without requiring traders to make separate purchases and trades.
According to data from the Securities and Exchange Board of India (Sebi) on total investor accounts with 42 energetic fund properties, the selection of folios rose to a document 62,049,189 on the end of September, from 55,399,631 in March-end, a acquire of 6.65 million or 66.5 lakh.
Folios are numbers designated to individual investor accounts, even though one investor may have more than one accounts.
"The rise in number of folios has mainly come from the retail category, which can be seen by growth in folios in equity, balanced and debt segments," BNP Paribas Mutual Fund Chief Investment Officer Ritesh Jain mentioned.
"Besides, low interest has been attracting investors into mutual funds," mentioned Vidya Bala, head of mutual fund analysis at FundsIndia.com.
Participation in MFs from retail traders, especially from small cities, has been growing.
Further, measures taken via markets regulator Sebi comparable to giving extra incentives for fund properties expanding to smaller towns, coupled with increasing investor awareness programmes via Asset Management Companies (AMCs) and trade frame Amfi to extend penetration of mutual funds also helped.
Retail investor accounts--defined via folios in equity, equity-linked saving schemes (ELSS) and balanced categories-- grew via over 61 lakh to greater than 5 crore during the period under assessment.
Overall, mutual funds have observed an infusion of Rs 2 lakh crore, whilst equity, ELSS and balanced classes together attracted an impressive inflow of over Rs 1.27 lakh crore.
Going forward, Atul Kumar, head of equity funds at Quantum Mutual Fund, mentioned that the fund house remain positive on Indian equities over longer term.
"High GDP growth relative to rest of the world, increasing consumption and likely investment in infrastructure are key drivers for equity returns. However, we are cautious on equities in the near term. Markets have been running up which is not supported by earnings growth. Most sell side brokers continue to revise their earning estimates downward," he added.
A mutual fund swimming pools the property of its traders and invests the cash on behalf of them. It supplies numerous investment tools like stocks and bonds without requiring traders to make separate purchases and trades.
Over 66 lakh new investors added in mutual funds in April -September period
![Over 66 lakh new investors added in mutual funds in April -September period]()
Reviewed by Kailash
on
October 23, 2017
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