2,45,411 investors debut in MF industry

The domestic fund industry added 245,411 investor accounts in May, taking the total number to 30,954,195 against 253,663 added in April, according to Securities and Exchange Board of India (Sebi).

Investor response was marked among diversified equity and equity-linked saving schemes, whose tally rose by 1,32,721 and 70,258, respectively. Only four new schemes were launched last month.

The Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty rose 4.84 per cent and 5.09 per cent, respectively, last month. 

NEW ENTRANTS The number of investor accounts of funds
Category	30-Apr	31-May	Change
Liquid	2,03,419	2,19,789	16,370
Gilt	24,668	25,509	841
Income	29,13,414	29,32,637	19,223
ELSS	45,98,623	46,68,881	70,258
Diversified equity	2,09,99,749	2,11,32,470	1,32,721
Balanced	18,30,980	18,38,467	7,487
Gold ETFs	47,520	47,697	177
Other ETFs	3,476	3,985	509
Fund of funds	86,935	84,760	-2,175
Total	3,07,08,784	3,09,54,195	2,45,411
Source: Sebi

Only units of Fidelity International Opportunities Fund and Birla-Sun Life Long Term Advantage Fund were allotted during the month, according to data from Association of Mutual Funds in India.

On the other hand, liquid schemes witnessed the participation of 16,370 investors on the back of a falling call money rate amid ample liquidity.

The fall in call money rate towards the end of the month also helped in attracting corporate investors to liquid plans.

Better inter-bank liquidity due to the fall in call money rate to more than a 10-year low of 0.80-0.90 per cent on May 31, made liquid plans and other short-term scheme attractive in terms of returns.

Other exchange-traded funds category, which has been bifurcated by the market regulator since April is a section of funds that are traded on stock exchanges only. This category attracted 509 investors.

In May, Benchmark Mutual Fund's total assets under management grew by over 40 per cent on fresh investments in its Bank BeES.

Bank BeES, an exchange-traded scheme listed on the National Stock Exchange, invests in CNX Bank Index shares.

Despite gold prices falling globally in May amid appreciation of the rupee, gold exchange traded funds hardly attracted new investors.

Fund of funds category saw a fall in its investor tally by 2,175 on the lack of new launches.