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Equity Funds Are Back


The investors and even the corporate investors are back hovering on the equity funds and that too after almost close to half a decade of consistent declines and the outflows the mutual fund industry has now seen a surge in the number of equity folios and the net investments in the equity schemes. Almost close to 12 lakhs of equity folios have been added since April 2014 and more than 10 lakh of these folios are owned by the retail investors and 2.4 lakhs of the folios are held by the HNI clients, any client making an investment of more than 5 lakhs are called as high net worth clients. More over the return of the retail investors comes as a relief to the fund houses.

 It is all due to the positive sentiment wave in the year of 2014 which helped in reversing the trends so far so much that equity funds have registered net inflows of Rs 55,872 crores since 1.4.2014 and out of this Rs 5,850 crores came in the January of 2015 itself and since this April however one fifth of the net inflows have been in the close ended schemes only raking in Rs 10,124 crores for the industry since the past 10 months and the rally as well as the HNIs have been more instrumental in creating the high tide in the equity funds as their folios have risen from 3.38 lakhs to 5.76 lakhs which is a whopping 70% rise and even the AUM of this category rocketed from Rs 40,751 crores on the 31.3.2014 to Rs 93,655 crores by the year end. Although the equity folios have grown but have stilol a long way to go as still they are below the 2009 figures and the best side of the story is that we are witnessing a net inflows after a long long time.