Mutual funds add 30.14 lakh folios in September to touch 25.19 Crore

13 Oct 2025 , 02:33 PM

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.