Mutual fund retail folios surge by 54.52 lakh to 4.54 crore in FY16

NEW DELHI: Showing a growing traction for mutual funds among investors, the number of retail folios grew by 54.52 lakh in the last fiscal to 4.54 crore amid volatile equity markets.

Besides, folios held by high networth individuals (HNIs), or those investing Rs 5 lakh or more crossed the 18 lakh mark. This category added 3.74 lakh folios in 2015-16, according to a report by Crisil Research.

Folios are numbers designated for individual investor accounts though one investor can have multiple accounts.

Despite the recent volatility in the equity market, retail investors continued to pour money in equity-oriented funds.

Retail folios in equity segment rose by 40.28 lakh to 3.49 crore past fiscal (77 per cent of total retail folios) despite the market, represented by Nifty 50, closing the financial year down nearly 9 per cent.

The report said 52.94 per cent of retail AUM (assets under management) stayed in equity mutual funds for more than two years. In comparison, about 23.96 per cent of HNI AUM stayed invested in equity mutual funds for more than two years.

Overall, mutual funds added over 59 lakh folios, a record rise of 14 per cent year-on-year, to take the tally to 4.77 crore.

"The industry upsurge was led by retail folios, which increased by 54.52 lakh or 13.6 per cent to 4.54 crore in 2015-16. About 17.05 lakh retail folios were added in March quarter against 12.93 lakh added in the previous quarter. They continued to account for 95 per cent of the total folio base," the report noted.