AMCs lose more than 32 lakh investors

AMCs lose more than 32 lakh investors

 Asset management companies (AMCs) seem to have lost more than 32 lakh investors, measured in terms of individual accounts or folios, in the first 10 months of the current fiscal, with equity funds accounting for most of the losses.

“The number of folios have fallen to 4.32 crore at the end of January from 4.64 crore in the previous fiscal (2011-12), translating into a decline of 32.45 lakh new investor accounts,” as per market regulator Sebi’s latest data on total investor accounts with the country’s 44 fund houses.

Folios are numbers designated to individual investor accounts, although one investor can have multiple folios.

Equity schemes were the biggest losers in terms of folios, losing 40.2 lakh new investor accounts. The total number of folios in equity funds plunged to 3.36 crore at the end of January 2013 from 3.76 crore in the previous fiscal.

Equity folios account for over 70 per cent of the industry’s total new investor accounts.
The mutual fund industry has been facing consistent equity folio closures in the past few months. Besides, equity schemes have seen outflows for the last eight months, with January witnessing an outflow of Rs 2,501 crore.

The benchmark BSE Sensex has gained over 14 per cent in the current fiscal so far (April-January, 2012-13). According to market participants, investors have used market rally as an opportunity to exit after booking profits.

Balanced schemes, which invest in equity and debt category, followed closely and shed 1.11 lakh folios to end at 26.07 lakh in January.