Various Mutual Funds have invested in 70 lakh investor accounts in 2016, which was driven by strong participation from retail investors, making a total of Rs 5.3 crore.
There were 22 lakh in 2014 as compared to the 56 lakh folios in 2015.
Contributions from smaller towns has helped in the increasing of accounts in the last two years. Folios are numbers given to the individual investor accounts, also one investor can have multiple ones.
Out of the total investor accounts with 43 active fund houses, the number of folios rose to a record 52,820,155 at the end of last month, from 45,853,274 at December-end 2014, a gain of 69.67 lakh, according to SEBI.
The momentum of retail participation from 2015 continued, and showed a remarkable recovery in market volatility last year too. Equity schemes have also contributed to the huge inflows.
There was seen a infusion of Rs 2.86 lakh crore in mutual funds, while equity and ELSS alone attracted an impressive inflow of around Rs 51,000 crore.
A Mutual Fund provides diverse investment instruments like stocks and bonds without requiring investors to make separate purchases and trades. A Mutual Fund pools the assets of its investors' money on behalf of them.