<p>Mutual funds lost about 33 lakh investors, measured in terms of individual accounts or folios, in the last financial year, 2013-14, primarily on account of volatility in equity market.<br /><br />It was the fifth consecutive year of loss of folios by mutual funds (MF). <br /><br />Folios are numbers designated to individual investor accounts, although one investor can have multiple folios.<br /><br />According to market regulator Sebi's data, on total investor accounts with 44 fund houses, the number of folios fell to around 3.95 crore at the end of 2013-14, from 4.28 crore in the last fiscal (2012-13) - a decline of 33 lakh new investor accounts.<br /><br />In the past five financial years till 2013-14, the MF industry had lost more than 88 lakh investor accounts.<br /><br />Equity market volatility<br /><br />MF sector, which held 4.75 crore folios at the end of financial year 2008-09, saw an increase of 3.66 lakh new investors account to 4.8 crore in 2009-10.<br /><br />However, later the number of folios continued to witness a southward trend and tumbled to 3.95 crore during the past financial year.<br /><br />Giving the reason for such massive fall in retail folios, Axis AMC National Sales Head Karan Datta said that volatility in equity market had prompted investors to exit.<br /><br />"The sharp decline in retail folios was mainly in the equity category which was impacted by volatility," he added. He noted said that every year mutual funds have been quitting.<br /><br />During 2013-14, the number of investor folios for equity schemes fell by 40 lakh. The total number of folios in equity funds were 2.92 crore by the end of 2013-14, as against 3.31 crore by the preceding fiscal.<br /><br />According to Sebi data, the total number of folios in debt funds rose by about 7.28 lakh to 68.67 lakh at the end of March 2013.<br /><br />Balanced schemes, which invest in equity and debt category, gained 10,824 folios to end at 26.13 lakh during the last financial year.<br /><br />However, exchange traded funds saw a drop of 34,773 folios to 7.04 lakh investor accounts at the end of March this year.<br /><br />At the end of February, the sector offered a total of 1,538 schemes to investors, of which 353 were equity schemes and 1,089 were debt-linked schemes. <br /></p>
<p>Mutual funds lost about 33 lakh investors, measured in terms of individual accounts or folios, in the last financial year, 2013-14, primarily on account of volatility in equity market.<br /><br />It was the fifth consecutive year of loss of folios by mutual funds (MF). <br /><br />Folios are numbers designated to individual investor accounts, although one investor can have multiple folios.<br /><br />According to market regulator Sebi's data, on total investor accounts with 44 fund houses, the number of folios fell to around 3.95 crore at the end of 2013-14, from 4.28 crore in the last fiscal (2012-13) - a decline of 33 lakh new investor accounts.<br /><br />In the past five financial years till 2013-14, the MF industry had lost more than 88 lakh investor accounts.<br /><br />Equity market volatility<br /><br />MF sector, which held 4.75 crore folios at the end of financial year 2008-09, saw an increase of 3.66 lakh new investors account to 4.8 crore in 2009-10.<br /><br />However, later the number of folios continued to witness a southward trend and tumbled to 3.95 crore during the past financial year.<br /><br />Giving the reason for such massive fall in retail folios, Axis AMC National Sales Head Karan Datta said that volatility in equity market had prompted investors to exit.<br /><br />"The sharp decline in retail folios was mainly in the equity category which was impacted by volatility," he added. He noted said that every year mutual funds have been quitting.<br /><br />During 2013-14, the number of investor folios for equity schemes fell by 40 lakh. The total number of folios in equity funds were 2.92 crore by the end of 2013-14, as against 3.31 crore by the preceding fiscal.<br /><br />According to Sebi data, the total number of folios in debt funds rose by about 7.28 lakh to 68.67 lakh at the end of March 2013.<br /><br />Balanced schemes, which invest in equity and debt category, gained 10,824 folios to end at 26.13 lakh during the last financial year.<br /><br />However, exchange traded funds saw a drop of 34,773 folios to 7.04 lakh investor accounts at the end of March this year.<br /><br />At the end of February, the sector offered a total of 1,538 schemes to investors, of which 353 were equity schemes and 1,089 were debt-linked schemes. <br /></p>