Mutual funds add 8.62 lakh folio despite market volatility
Indian mutual fund industry has registered an increase of the 8.62 lakh folios in the month of July 2018. This growth was led by the increased folios in the Liquid funds.
Folios are the unique numbers designated to the individual investor accounts, however, one investor can hold multiple accounts.
During the month of the July 2018, Liquid funds added 41,454 accounts and Diversified equity category added 7,30,754 investor folios, whereas the ETF category witnessed a decline of 85,898 folios. Except for Gilt funds, all other debt fund categories have recorded a growth in folios. Gilt funds witnessed a decline of 3.5 per cent in July, on the other hand, Income and Liquid funds had an increase of 20,683 and 41,454 folios, respectively.
Market experts attributed this increase in folios to the recent surge and the optimistic environment in the equity markets. In the recent past, despite the volatility, Nifty and Sensex have managed to reach their all-time highs which have attracted more investors towards mutual fund investments.
With the hope of positive returns from here on, investors are betting on the mutual funds. The market is still witnessing volatility, but the rise in folios suggest a maturing Indian mutual fund industry.
