Mutual fund industry lost 29 lakh accounts in April 2013-January 2014: Media Report

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Mutual fund industry lost 29 lakh accounts in April 2013-January 2014: Media Rep
Mutual fund industry has lost an estimated over 29 lakh investors, measured in terms of individual accounts or folios, in the first 10 months of the current fiscal, mainly due to profit-booking and various merger schemes, reported PTI.

Of more than 29 lakh investors lost during April 2013 to January 2014, most of the folio closures were seen in the equity portfolio despite the efforts of the mutual fund industry to educate investors about staying invested for the long-term.

According to Sebi data on total investor accounts with 45 fund houses, the number of folios fell to around 3.99 crore at the end of January 2014 from 4.28 crore in the last fiscal (2012-13), indicating a decline of 29.41 lakh.  Market participants attributed the sharp fall in the number of folios to profit-booking and various merger schemes in the mutual fund industry, among other reasons.

They further said that the trend of folio closures is expected to decline in the coming months as investors are getting confident about the economy and the market in general.

Dion Global Solutions Ltd.

Story first published: Monday, February 17, 2014, 9:10 [IST]
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