Equity mutual funds witnessed an addition of 20 lakh investor accounts or folios during the April-February period of the current fiscal (2014-15) on account of a sharp rally in stock markets, said the media report.
As per latest data on investor accounts with 45 fund houses, the number of equity folios rose to 3.14 crore last month, from 2.94 crore during the full fiscal 2013-14, a gain of 20 lakh folios.
April saw the first rise in folio count in more than four years. Prior to that, the equity mutual fund (MF) sector had seen a continuous closure of folios since March 2009 after the market crashed in late 2008 due to the global financial crisis.
Since March 2009, the sector has seen a closure of 1.5 crore folios. The investor base reached its peak of 4.11 crore in March 2009, while it was 3.77 crore in March 2008.
Moreover, mutual funds industry reported net inflows of over Rs 61,000 crore in equity funds in April-February period, which helped the industry grow its folio count.
Overall, industry's retail folios surged to 4.2 crore at February-end 2015, from 4.05 crore at end of March.