Mutual funds registered a 4.6 per cent increase in retail folios in the past six months ended September 2014, marking the highest rise since March 2009, according to rating agency Crisil.
* In absolute terms this translated to an increase of 16.6 lakh retail folios. The rise in retail folios was led by addition in equity fund folios.
* The industry had 3.80 crore retail folios as on September 30, 2014, which is almost 96 per cent of the total folio base (including institutional and high net worth individual or HNI folios) of 3.95 cr folios.
* At the aggregate level, mutual fund folios fell marginally due to a decline in high networth investor (HNI) folios.
* Of the Rs 1.72 lakh crore of retail investment in equity-oriented mutual funds, Rs 1.10 lakh crore continued for over 24 months.
MONEY FLOWS TO EQUITY: The equity category, which reported a consistent decline in retail folios since the second half of FY11 till September 2014, posted a record addition of 16.89 lakh folios to 2.90 cr folios. Strong rally in the equity market and the consequent rise in investors’ interest led to the sharp increase in retail folios. The CNX Nifty gained 19 per cent in the six months ended September 2014.
HNIs PULL OUT: The HNI (individuals investing Rs 5 lakh or more) segment saw folio closure in all mutual fund categories. The segment saw closure of over 16 lakh accounts in September 2014, a record fall as per data available since March 2009. The equity fund category saw the biggest fall with closure of 11.34 lakh folios.