MUTUAL FUNDS ADD 30.14 LAKH FOLIOS IN SEPTEMBER 2025
For the month of September 2025, a total of 30.14 Lakh new folios were added, taking the total folio count to 25.19 Crore. For the full year to September 2025, Indian mutual funds added 4.14 Crore folios; predominantly across active equity and passive funds. There was a marginal slowing of folio addition in September 2025 and that was largely on account of the volatility in the market and the global uncertainty associated with tariffs and visas.
MF FOLIOS: MACRO PICTURE FOR SEPTEMBER 2025
Here is the macro picture of mutual fund folio growth for September 2025.
| Macro picture | Total Folios Sep-25 | Total Folios Sep-24 | Folio Growth |
| Open Ended Schemes | 25,14,25,114 | 20,99,75,796 | 19.74% |
| Closed-Ended Schemes | 4,98,048 | 5,39,888 | -7.75% |
| Total of all schemes | 25,19,23,162 | 21,05,15,684 | 19.67% |
Data Source: AMFI
At a macro level, the total number of mutual fund folios as of September 2025 stood at 25.19 Crore; compared to 24.89 Crore in August, 24.57 Crore in July, and 24.13 Crore in June 2025. On a yoy basis, growth in total folios for September 2025 stood at 19.67%; compared to 21.70% in August, 23.85% in July, and 26.33% in June 2025. Folio Growth rate has been falling and it is not just about the folios clean-up, but about the law of large numbers. The growth is just plateauing on a higher base.
ACTIVE DEBT FUND FOLIOS: STILL QUITE IMPRESSIVE
Debt fund folios growth has turned around since May 2025 after a long spell of folio underperformance by debt funds. Debt fund folios as of September 2025 grew 8.88%; compared to 8.41% in August, 7.06% in July, and 3.34% in June 2025. Overnight funds, floater funds, credit risk funds, and Banking & PSU Funds have seen folios contracting.
| Active Debt Funds | Total Folios Sep-25 | Total Folios Sep-24 | Folio Growth |
| Liquid Fund | 21,75,269 | 18,00,818 | 20.79% |
| Money Market Fund | 5,15,392 | 4,31,111 | 19.55% |
| Short Duration Fund | 5,25,052 | 4,39,391 | 19.50% |
| Long Duration Fund | 91,968 | 77,892 | 18.07% |
| Ultra Short Duration Fund | 7,35,253 | 6,39,768 | 14.92% |
| Gilt Fund | 2,25,769 | 2,02,816 | 11.32% |
| Medium Duration Fund | 2,34,720 | 2,12,263 | 10.58% |
| Dynamic Bond Fund | 2,39,543 | 2,20,354 | 8.71% |
| Gilt Fund with 10Y duration | 38,766 | 36,148 | 7.24% |
| Corporate Bond Fund | 5,67,992 | 5,31,965 | 6.77% |
| Low Duration Fund | 8,51,734 | 8,36,038 | 1.88% |
| Medium to Long Duration Fund | 1,03,999 | 1,02,847 | 1.12% |
| Banking and PSU Fund | 2,39,947 | 2,41,073 | -0.47% |
| Credit Risk Fund | 1,88,983 | 1,90,077 | -0.58% |
| Floater Fund | 1,99,240 | 2,02,562 | -1.64% |
| Overnight Fund | 7,14,717 | 8,59,383 | -16.83% |
| Sub Total – Active Debt Funds | 76,48,344 | 70,24,506 | 8.88% |
Data Source: AMFI
Of the 16 categories of debt funds, 12 categories showed positive growth in folios, with 7 of these categories growing in double digits yoy in September 2025 and 10 categories growing over 5%. The leaders in terms of folio growth were Liquid Funds at 20.79% yoy, money market funds 19.55%, short duration funds 19.50%, and Long Duration Funds 18.07%. Folio growth has been veering towards the short end of the yield curve.
ACTIVE EQUITY FUNDS ADD 2.74 CRORE FOLIOS YOY
In September 2025, active equity funds added 2.74 Crore folios; compared to 3.04 Crore folios in August, 3.38 Crore folios in July, and 3.51 Crore folios in June 2025. Clearly, the momentum is tapering. The yoy folio expansion for active equity funds in September 2025 fell to 18.59%; compared to 21.25% in August, 23.67% in July, and 26.39% in June 2025. Volatility, valuations, and saturation appear to be hitting equity fund folio growth.
| Active Equity Funds | Total Folios Sep-25 | Total Folios Sep-24 | Folio Growth |
| Multi Cap Fund | 1,07,86,468 | 79,88,882 | 35.02% |
| Mid Cap Fund | 2,33,43,247 | 1,75,11,890 | 33.30% |
| Flexi Cap Fund | 2,02,06,005 | 1,60,36,032 | 26.00% |
| Large & Mid Cap Fund | 1,28,53,471 | 1,06,06,224 | 21.19% |
| Small Cap Fund | 2,68,94,961 | 2,23,38,121 | 20.40% |
| Value Fund/Contra Fund | 87,85,142 | 75,22,759 | 16.78% |
| Sectoral/Thematic Funds | 3,18,89,078 | 2,75,28,614 | 15.84% |
| Large Cap Fund | 1,66,25,122 | 1,48,91,416 | 11.64% |
| Dividend Yield Fund | 12,01,716 | 11,03,567 | 8.89% |
| Focused Fund | 53,46,169 | 50,96,721 | 4.89% |
| ELSS | 1,66,90,290 | 1,66,25,720 | 0.39% |
| Sub Total – Active Equity Funds | 17,46,21,669 | 14,72,49,946 | 18.59% |
Data Source: AMFI
In September 2025, all 11 active equity fund categories witnessed accretion in folios; but growth in folios was in single digits for Dividend Yield Funds, focused funds and ELSS funds. The big boost to folio accretion came from multi-cap funds 35.02%, mid-cap funds 33.30%, and flexi-cap funds at 26.00%. A total of 5 out of 11 equity fund categories saw folio accretion of over 20%. Alpha hunting and allocation remain the dominant themes.
HYBRID FUNDS – FOLIO ACCRETION GRAVITATES TO ALLOCATION
All the 8 Hybrid and solution funds showed yoy growth in folios; although just 4 out of 8 hybrid fund category funds managed double-digit yoy growth in September 2025.
| Hybrid / Solution Funds | Total Folios Sep-25 | Total Folios Sep-24 | Folio Growth |
| Multi Asset Allocation Fund | 37,04,172 | 25,96,723 | 42.65% |
| Arbitrage Fund | 6,93,596 | 5,51,949 | 25.66% |
| Equity Savings Fund | 5,15,464 | 4,50,253 | 14.48% |
| Dynamic Asset Allocation/BAF | 55,09,198 | 49,21,853 | 11.93% |
| Aggressive Hybrid Fund | 60,11,535 | 55,95,878 | 7.43% |
| Children’s Fund | 31,44,415 | 30,16,144 | 4.25% |
| Conservative Hybrid Fund | 5,72,447 | 5,51,053 | 3.88% |
| Retirement Fund | 30,27,172 | 29,57,658 | 2.35% |
| Sub Total – Hybrid Funds | 2,31,77,999 | 2,06,41,511 | 12.29% |
Data Source: AMFI
The 8 hybrid funds added 25.36 Lakh folios in last 1 year; with asset allocation the preferred theme. The best folio growth was once again in multi asset allocation funds at 42.65%, followed by Arbitrage funds at 25.66%, Equity Savings Funds at 14.8%, and Balanced Advantage Funds (BAFs) at 11.93%. Asset allocation is now the big hybrid theme. In September 2025, hybrid fund folios grew 12.29%; compared to 12.30% in August, 12.39% in July, and 11.81% in June 2025. Hybrid fund folio growth is almost stable.
PASSIVE FUNDS ADDED 1.09 CRORE FOLIOS YOY
Passive funds have seen a revival of interest in the last 3 months and the surge is evident in September; thanks to gold and silver ETFs.
| Passive Funds | Total Folios Sep-25 | Total Folios Sep-24 | Folio Growth |
| GOLD ETF | 86,63,662 | 57,10,499 | 51.71% |
| Other ETFs | 2,17,40,194 | 1,67,28,549 | 29.96% |
| Index Funds | 1,40,89,501 | 1,12,33,678 | 25.42% |
| FOFs investing overseas | 14,83,745 | 13,87,107 | 6.97% |
| Sub Total – Passive Funds | 4,59,77,102 | 3,50,59,833 | 31.14% |
Data Source: AMFI
Gold ETFs, once again, dominated folio growth at 51.71%, followed by Index ETFs at 29.96%, and index funds at 25.42% in September 2025. Now, even FOFs investing overseas are seeing yoy folio growth. Passive fund folio growth in September 2025 stood at 31.14%; compared to 32.58% in August, 36.01% in July, and 41.44% in June 2025. Growth in passive folios may be waning, but the interest surely seems to be back. However, it remains to be seen if the folios growth will continue to be driven by gold and silver ETFs or it would widen.