The new monthly folios by equity mutual funds jumped to a record 2.2 million in August 2023, data from the Association of Mutual Funds in India (AMFI) showed.
The monthly addition in August was twice that of the long-term average, reported Economic Times.
Of the total folio addition in August, 38% was in small-cap funds, the largest among all equity mutual fund (MF) categories, followed by sectoral funds at 16.4% and mid-cap funds at 14.2%.
Small-cap funds accounted for 13.2% of the equity MF folios while the largest contribution was from equity-linked saving scheme (ELSS) funds at 14.6%. The number of small-cap folios has overtaken large-cap folios.
Small-cap funds have received an inflow of ₹26,305 crore this year so far, making up 28% of the total mutual fund inflows and the highest among all equity fund categories. As a result, the assets under management (AUM) of small-cap funds rose by 61% year-on-year to ₹1.9 lakh crore at the end of August while the overall equity MF AUM grew by 25% to ₹18.59 lakh crore.
The total tally of equity MF folios reached 104 million compared with 92.4 million a year ago. It grew by 15% annually in the past four years.
The investment per folio was ₹1,77,502 at the end of August compared with ₹1,62,219 a year ago. At ₹2,28,604, dividend funds had the highest investment per folio while ELSS funds had the lowest reading at ₹1,14,566.
