Mutual Funds Add 5.6 Lakh New Accounts / Portfolio in July 2020

 The Mutual Fund Industry added over 5.6 Lakh investor accounts in July 2020 taking the total tally to 9.2 Crores.. Mostly on account of contribution from debt schemes in comparison the Mutual Fund industry has added 5 Lakh new folios in June 2020.

According to the data released form AMFI ( Association to Mutual Funds in India ), the number of folios with 45 fund houses rose to 9,21,05,737 at the end of last month from 9,15,42,092 at June end registering a gain of 5.63 Lakhs folio last month of which more than 4.5 Lakhs were added in debt funds.

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Our Analysis

The high growth in folio or number of accounts , should not be seen as new fresh investors have joined its only the existing ones who invest through brokers in regular Mutual Funds inspite of having their existing folio in a Fund House for brokerage purpose the advisors / agents put in their own code resulting in generation of new folio of the same investors.

The real data would be to give the number of new additions based on the PAN Number ( Permanent Account Number ) of a person we may see the figure as stated above fall down to One Lakh only.

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Highest Cash Holding Mutual Funds April 2020

Mutual Funds as provided in their KIM ( Key Information Memorandum ) that they can hold cash upto certain level as a point of time and remain invested of the rest of the amount.

As in present scenario due to Covid 19 - Corona Pandemic the equity market have fallen around 30% from the recent high levels which gives a good opportunity for the funds which are in cash to go for investment in their choice of stocks and in case pressure for redemption is seen then they need not sell their stocks to pay those who are exiting the funds.

High cash holding can be a double edged sword as if market starts to rally relentlessly then these funds miss the bus of the rally and in turn ten to give subdued return that the aggressive funds.

We have given a list of top 15 Funds in percentage of their cash holdings with our investment rating and grade return, smart investor can look few of these funds to invest in and reap the benefit of fallen down equity markets.

Fund	As % of Assets	Fund Type	Our Investment Ratings (10)	Return Grade
ICICI Prudential Focused Equity	29	Multicap	6	Medium
SBI Contra	26	Multicap	7	Medium
Indiabulls Value	22	Multicap	8	High
HDFC Retirement Saving Equity	20	Multicap	5	Low
JM Large Cap	19	Tax Saver	8	High
Parag Parikh Tax Saver	19	Tax Saver	7	Medium
Axis Small Cap	18	Small Cap	7	High
Axis Multi Cap	17	Multicap	7	Medium
Axis Blue Chip	16	Large Cap	6	Medium
Axis Mid Cap	16	Mid Cap	7	High
ICICI Prudential Retirement	15	Multicap	5	Low
Indiabulls Tax Savings	14	Tax Saver	6	Medium
Tata Small Cap	13	Small Cap	7	Medium
HDFC Small Cap	13	Small Cap	5	Low
Shriram Long Term Equity	12	Tax Saver	5	Low

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