Mutual funds (MFS) have seen a sharp jump in SIP registrations as well as account closures, signalling a rejig in portfolios by investors amid a surge in equity volatility ahead of the general elections. Last month, SIP registrations jumped 48 per cent month-on-month to 6.4 million, while closures surged 42 per cent to 3.3 million.
"One reason behind the surge in new account openings as well as closures could be the realignment of the portfolio. In the last few years, the allocation towards smallcap and midcap funds went up. Some investors may now be shifting towards large cap-focused schemes. That is a healthy sign," said Swarup Mohanty, VC & CEO, Mirae Asset Investment Managers (India).
"A surge in new accounts and closure of existing ones indicate portfolio realignment. This could be on both fronts - within asset classes and scheme categories," said Jimmy Patel, Chief Executive Officer (CEO) of Quantum MF.
The SIP closure data also includes accounts that reached their maturity in April.
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