MUTUAL FUND FOLIOS CRAWL TO 23.45 CRORE
Between January 2025, February 2025, and March 2025, total number of mutual fund folios grew from 22.92 Crore to 23.23 Crore and to 23.45 Crore. It has been a virtual crawl as much of the new SIP accounts are being offset with a rise in SIP closures. These are just unique mutual fund accounts (folios), and the unique investors in mutual funds mapped on PAN is just about 5.5 Crore. Over the last 11 years, mutual fund folios have grown 5.94 times from 3.95 Crore to 23.45 Crore. Incidentally, the SIP stoppage ratio has now stayed above 100% for 3 months in a row.
MF FOLIOS: MACRO PICTURE FOR MARCH 2025
Here is the macro picture of mutual fund folio growth for March 2025; across open-ended and close-ended funds?
| Macro picture | Total Folios Mar-25 | Total Folios Mar-24 | Folio Growth |
| Open ended Funds | 23,39,87,130 | 17,72,92,450 | 31.98% |
| Closed Ended and Interval Funds | 5,20,941 | 564310 | -7.69% |
| Grand Total | 23,45,08,071 | 17,78,56,760 | 31.85% |
Data Source: AMFI
At a macro level, the total number of mutual fund folios as of March 2025 stood at 23.45 Crore; compared to 23.23 Crore in February, 22.92 Crore in January, 22.50 Crore in December, and 22.08 Crore in November 2024. On a yoy basis, growth in total folios for March 2025 stood at 31.85%; compared to 33.34% in February, 35.17% in January, 36.46% in December, and 36.46% in November 2024. The monthly traction has slowed on a progressive basis, largely due to a spike in SIP closures.
ACTIVE DEBT FUND FOLIOS CONTRACT, AMID TREASURY SELL-OFF
Debt fund folios have been under pressure for last couple of years and that trend continues. For March 2025, active debt fund folios contracted by -3.0% yoy; compared to -3.69% in February, -4.45% in January, and -5.17% in December 2024. Overnight funds and credit risk funds have seen the sharpest contraction in folios in March 2025.
| Active Debt Funds | Total Folios Mar-25 | Total Folios Mar-24 | Folio Growth |
| Long Duration Fund | 90,344 | 64,858 | 39.30% |
| Gilt Fund | 2,14,454 | 1,86,552 | 14.96% |
| Liquid Fund | 18,91,968 | 17,82,854 | 6.12% |
| Ultra Short Duration Fund | 6,59,907 | 6,33,208 | 4.22% |
| Dynamic Bond Fund | 2,24,971 | 2,20,569 | 2.00% |
| Medium to Long Duration Fund | 1,02,463 | 1,00,915 | 1.53% |
| Money Market Fund | 4,36,673 | 4,30,626 | 1.40% |
| Short Duration Fund | 4,53,772 | 4,56,155 | -0.52% |
| Low Duration Fund | 8,34,056 | 8,77,506 | -4.95% |
| Corporate Bond Fund | 5,30,344 | 5,60,652 | -5.41% |
| Gilt Fund 10Y fixed duration | 35,898 | 38,142 | -5.88% |
| Medium Duration Fund | 2,15,394 | 2,30,314 | -6.48% |
| Banking and PSU Fund | 2,36,154 | 2,57,714 | -8.37% |
| Floater Fund | 1,96,709 | 2,15,735 | -8.82% |
| Credit Risk Fund | 1,81,362 | 2,08,971 | -13.21% |
| Overnight Fund | 6,45,290 | 9,00,146 | -28.31% |
| Sub Total – Active Debt Funds | 69,49,759 | 71,64,917 | -3.00% |
Data Source: AMFI
Out of the 16 categories of debt funds, 7 categories showed positive growth in folios, with folios of medium to Dynamic Bond funds, Medium to Long Duration Funds, and Money Market Funds growing yoy at 2% or less. The leader in terms of folio growth was, once again, Long Duration Funds at 39.30% yoy, followed by gilt funds at 14.96%. Overnight funds again saw folio contraction of -28.31% and credit risk folios contracted of -13.21% yoy. A total of five debt fund categories saw yoy folio contraction of more than 6%.
ACTIVE EQUITY FUNDS ADD 4.10 CRORE FOLIOS YOY
In March 2025, active equity funds added 4.10 Crore folios compared to 4.23 Crore folios in February, 4.41 Crore folios in January and 4.45 Crore folios in December 2024. For active equity funds, the yoy folio expansion for March 2025 tapered to 33.38%; compared to 35.22% in February, 37.9% in January, and 39.4% in December 2024. The rate of growth has been progressively falling.
| Active Equity Funds | Total Folios Mar-25 | Total Folios Mar-24 | Folio Growth |
| Sectoral/Thematic Funds | 3,07,93,811 | 1,82,48,179 | 68.75% |
| Multi Cap Fund | 94,96,709 | 60,71,425 | 56.42% |
| Mid Cap Fund | 2,10,94,403 | 1,40,15,426 | 50.51% |
| Dividend Yield Fund | 11,98,215 | 8,77,410 | 36.56% |
| Value Fund/Contra Fund | 82,54,011 | 61,78,068 | 33.60% |
| Small Cap Fund | 2,50,10,377 | 1,90,28,082 | 31.44% |
| Large & Mid Cap Fund | 1,18,41,516 | 92,77,595 | 27.64% |
| Flexi Cap Fund | 1,79,09,343 | 1,42,59,500 | 25.60% |
| Large Cap Fund | 1,59,97,325 | 1,36,68,455 | 17.04% |
| ELSS | 1,70,11,131 | 1,61,13,976 | 5.57% |
| Focused Fund | 52,17,831 | 50,83,569 | 2.64% |
| Sub Total – Active Equity Funds | 16,38,24,672 | 12,28,21,685 | 33.38% |
Data Source: AMFI
In March 2025, all the 11 active equity fund categories witnessed accretion in folios; although the growth in folios was in single digits in case of focused funds and ELSS funds. The big boost to folio accretion in equity funds came from sectoral / thematic funds at 68.75%; followed by multi-cap funds at 56.42%, and mid-cap funds at 50.51%. A total of 6 equity categories saw folio accretion of over 30%. This list includes sectoral funds, multi-cap funds, mid-cap funds, dividend yield funds, contra funds, and small cap funds. Amidst the uncertainty, there are still signs of alpha hunting!
HYBRID FUNDS – ALLOCATION NEED DRIVES HYBRID FUND FOLIOS
All the 8 Hybrid and solution funds showed yoy growth in folios; but 4 out of the 8 hybrid fund category funds only managed single-digit yoy growth in March 2025.
| Hybrid / Solution Funds | Total Folios Mar-25 | Total Folios Mar-24 | Folio Growth |
| Multi Asset Allocation Fund | 30,61,319 | 20,24,071 | 51.25% |
| Arbitrage Fund | 5,95,659 | 4,91,203 | 21.27% |
| Equity Savings Fund | 4,79,613 | 4,09,279 | 17.18% |
| Dynamic Asset Allocation/BAF | 52,08,500 | 46,15,533 | 12.85% |
| Balanced Hybrid Fund | 57,73,385 | 54,16,765 | 6.58% |
| Retirement Fund | 29,96,580 | 28,65,115 | 4.59% |
| Children’s Fund | 30,76,221 | 29,83,777 | 3.10% |
| Conservative Hybrid Fund | 5,49,001 | 5,37,555 | 2.13% |
| Sub Total – Hybrid Funds | 2,17,40,278 | 1,93,43,298 | 12.39% |
Data Source: AMFI
The 8 hybrid funds added 23.97 Lakh folios in the last 1 year; with only 4 out of these 8 reporting double-digit folio growth. The best folio growth was once again in multi asset allocation funds at 51.25%, followed by Arbitrage funds at 21.27%, Equity Savings Funds at 17.18%, and Balanced Advantage Funds (BAFs) at 12.85%. Asset allocation across diverse classes appears to be the flavour in hybrids; while arbitrage fund have emerged as a lucrative and tax-efficient proxy for liquid funds. Hybrid fund folios grew 12.39% yoy in March; compared to 12.70% yoy in February, 12.70% in January, and 14.28% in December, 2024. Hybrid funds continue to feed on the asset allocation theme.
PASSIVE FUNDS ADD 1.35 CRORE FOLIOS YOY
The big story among passive funds in March 2025 is the sharp revival in retail interest as flows bounced back in the week
| Passive Funds | Total Folios Mar-25 | Total Folios Mar-24 | Folio Growth |
| Index Funds | 1,30,86,709 | 75,76,546 | 72.73% |
| Other ETFs | 2,00,30,131 | 1,37,67,925 | 45.48% |
| GOLD ETF | 69,69,522 | 50,60,791 | 37.72% |
| Fund of funds investing overseas | 13,86,059 | 15,57,288 | -11.00% |
| Sub Total – Passive Funds | 4,14,72,421 | 2,79,62,550 | 48.31% |
Data Source: AMFI
Global uncertainty led to folio contraction in international fund of funds (FOF) for the seventh month in a row. Passive fund folios growth at 48.31% yoy; best among categories. Index funds dominated folio growth at 72.73%, followed by index ETFs at 45.48%, while gold ETFs is gaining traction with 37.72% yoy growth in March 2025. Passive fund folio growth in March 2025 stood at 48.31%; compared to 50.15% in February, 50.92% in January, and 52.4% in December 2024. Passive folios have been the unlikely beneficiaries of the macro and market turmoil; but the good news is that passive investment is back.