Indian mutual fund industry has continued to lose its equity investors base in May too. According to the statistics released by the Securities and Exchange Board of India (Sebi), the equity folios (including equity linked saving schemes, ELSS) further shrank by 1.86 lakh in May.
Interestingly, the decline in equity folios came in a month when fund industry saw a positive net inflow of over Rs 500 crore after witnessing continuous outflows for the first four months of the year.
But despite fresh money being pumped into equity mutual funds, fund managers could not apply brakes on the dwindling folios. Taking the recent month's statistics into account, mutual fund players have lost close to half a million equity folios in a matter of just two months, April-May.
On the overall front, industry lost 1.1 lakh folios across the several asset classes. As on 31 May, the overall number of folios industry owned stood at 4.61 crore against 4.64 crore as on 31 March, 2012.