MFs add 4.5L folios in Aug; debt schemes gain traction

New Delhi: The mutual fund industry added 4.5 lakh investor accounts in August, taking the total tally to 9.25 crore, primarily on account of contribution from debt schemes. Market experts said that the addition of folios suggests that investors were undeterred by the market volatility.

Besides, it indicates their understanding of the market risks associated with the mutual fund schemes, they added.

According to data from the Association of Mutual Funds in India (Amfi), the number of folios with 45 fund houses rose to 9,25,70,743 at the end of last month from 9,21,05,737 at the end of July.

The sector added 5.6 lakh investors' accounts in July, 5 lakh in June, 6.13 lakh in May and 6.82 lakh in April. Of the total new folios last month, more than 2 lakh were added in debt funds. Folios are numbers designated to individual investor accounts. An investor can have multiple folios. The number of folios under equity and equity-linked saving schemes rose by 34,715 in August to 6.38 crore. Debt schemes folios count went up by 2.34 lakh to 71.2 lakh. Barring overnight, long duration, credit risk and gilt funds, all categories in debt funds witnessed growth in folios.