MUTUAL FUNDS ADD 30 LAKH FOLIOS IN JUNE 2025
For the month of June 2025, a total of 30 Lakh new folios were added, taking the total folio count to 24.13 Crore. This is on top of the 20 Lakh folios already added in May 2025. In short, since the clean-up of defunct SIP folios was completed in April 2025, Indian mutual funds have already added 50 Lakh folios; indicating robust retail demand.
Folios added by mutual funds were 31 Lakhs in February, 22 Lakhs in March, 18 Lakhs in April, and 20 Lakhs in May 2025. In June 2025, the folio addition has bounced back to 30 Lakh folios. Over last 11 years, mutual fund folios have grown 6.11 times from 3.95 Crore to 24.13 Crore. We had seen earlier in May that SIP Stoppage has also mellowed down.
MF FOLIOS: MACRO PICTURE FOR JUNE 2025
Here is the macro picture of mutual fund folio growth for June 2025.
Macro picture | Total Folios Jun-25 | Total Folios Jun-24 | Folio Growth |
Open ended Funds | 24,08,37,563 | 19,04,97,503 | 26.43% |
Close-Ended and Interval Funds | 5,06,993 | 5,49,615 | -7.75% |
Grand Total | 24,13,44,556 | 19,10,47,118 | 26.33% |
Data Source: AMFI
At a macro level, the total number of mutual fund folios as of June 2025 stood at 24.13 Crore; compared to 23.83 Crore in May, 23.63 Crore in April, and 23.45 Crore in March 2025. On a yoy basis, growth in total folios for June 2025 stood at 26.33%; compared to 28.15% in May, 30.21% in April, and 31.85% in March 2025. With inactive SIPs cleaned up, we should see a more reflective SIP stoppage ratio and a better Contributing SIP ratio.
ACTIVE DEBT FUND FOLIOS: MORE POSITIVE IN JUNE 2025
Debt fund folios have been under pressure for last couple of years; but there seems to be a turnaround since May 2025. Debt fund folios as of June 2025 grew +3.34%; compared to +0.89% in May, -1.15% in April, -3.00% in March, and -3.69% in February 2025. Overnight funds, credit risk funds, floater funds, and Banking & PSU Funds saw sharp contraction.
Active Debt Funds | Total Folios Jun-25 | Total Folios Jun-24 | Folio Growth |
Long Duration Fund | 96,767 | 66,641 | 45.21% |
Gilt Fund | 2,32,057 | 1,89,771 | 22.28% |
Ultra Short Duration Fund | 7,18,333 | 6,31,122 | 13.82% |
Short Duration Fund | 4,88,358 | 4,38,621 | 11.34% |
Liquid Fund | 19,73,815 | 17,78,436 | 10.99% |
Dynamic Bond Fund | 2,36,833 | 2,16,403 | 9.44% |
Medium to Long Duration Fund | 1,04,283 | 99,224 | 5.10% |
Gilt Fund with 10-Y duration | 38,371 | 36,681 | 4.61% |
Money Market Fund | 4,50,098 | 4,30,454 | 4.56% |
Medium Duration Fund | 2,26,670 | 2,19,933 | 3.06% |
Corporate Bond Fund | 5,46,232 | 5,41,562 | 0.86% |
Low Duration Fund | 8,49,791 | 8,47,689 | 0.25% |
Banking and PSU Fund | 2,39,295 | 2,45,334 | -2.46% |
Floater Fund | 1,99,600 | 2,10,277 | -5.08% |
Credit Risk Fund | 1,83,524 | 1,97,979 | -7.30% |
Overnight Fund | 6,63,083 | 8,63,087 | -23.17% |
Sub Total – Active Debt Funds | 72,47,110 | 70,13,214 | 3.34% |
Data Source: AMFI
Of the 16 categories of debt funds, 12 categories showed positive growth in folios, with 5 of these categories growing at over 10% yoy in June 2025 and 7 growing in over 5%. The leader in terms of folio growth was, Long Duration Funds at 45.21% yoy, followed by gilt funds at 22.28%. Overnight funds saw folio contraction of -23.17% and credit risk folios contracted -7.30% yoy. Folios picture of debt funds has clearly improved in June 2025.
ACTIVE EQUITY FUNDS ADD 3.51 CRORE FOLIOS YOY
In June 2025, active equity funds added 3.51 Crore Folios; compared to 3.71 Crore folios in May, 3.94 Crore folios in April, 4.10 Crore folios in March, and 4.23 Crore folios in February 2025. For active equity funds, the yoy folio expansion for June 2025 further tapered to 26.39%; compared to 28.80% in May, 31.39% in April, 33.38% in March, and 35.22% in February 2025. Rate of folio growth has progressively slowed at higher index levels.
Active Equity Funds | Total Folios Jun-25 | Total Folios Jun-24 | Folio Growth |
Multi Cap Fund | 1,00,58,599 | 68,57,791 | 46.67% |
Mid Cap Fund | 2,20,05,565 | 1,52,74,241 | 44.07% |
Sectoral/Thematic Funds | 3,11,40,356 | 2,24,97,544 | 38.42% |
Dividend Yield Fund | 12,02,199 | 9,52,532 | 26.21% |
Small Cap Fund | 2,56,14,974 | 2,02,96,496 | 26.20% |
Flexi Cap Fund | 1,89,38,944 | 1,50,26,296 | 26.04% |
Value Fund/Contra Fund | 84,50,603 | 67,21,735 | 25.72% |
Large & Mid Cap Fund | 1,22,62,237 | 98,34,494 | 24.69% |
Large Cap Fund | 1,63,04,538 | 1,41,29,880 | 15.39% |
Focused Fund | 52,70,077 | 50,69,662 | 3.95% |
ELSS | 1,68,94,182 | 1,63,71,644 | 3.19% |
Sub Total – Active Equity Funds | 16,81,42,274 | 13,30,32,315 | 26.39% |
Data Source: AMFI
In June 2025, all 11 active equity fund categories witnessed accretion in folios; but growth in folios was in single digits for focused funds and ELSS funds. The big boost to folio accretion in equity funds came from multi-cap funds 46.67%, mid-cap funds at 44.07%; followed by Sectoral / Thematic funds at 38.42%, and dividend yield funds at 26.21%. A total of 7 out of 11 equity fund categories saw folio accretion of over 25%. While the alpha hunting was dominant; it appears to have shifted from sectoral concentration to market cap spreading.
HYBRID FUNDS – ALLOCATION AND ARBITRAGE THE BIG STORIES
All the 8 Hybrid and solution funds showed yoy growth in folios; although 4 out of the 8 hybrid fund category funds only managed single-digit yoy growth in June 2025.
Hybrid / Solution Funds | Total Folios Jun-25 | Total Folios Jun-24 | Folio Growth |
Multi Asset Allocation Fund | 33,07,121 | 23,40,890 | 41.28% |
Arbitrage Fund | 6,47,318 | 5,19,317 | 24.65% |
Equity Savings Fund | 4,87,952 | 4,24,433 | 14.97% |
Dynamic Asset Allocation/BAF | 53,42,869 | 47,22,817 | 13.13% |
Aggressive Hybrid Fund | 58,47,771 | 54,80,053 | 6.71% |
Children’s Fund | 31,03,506 | 29,96,772 | 3.56% |
Conservative Hybrid Fund | 5,60,827 | 5,42,400 | 3.40% |
Retirement Fund | 30,09,203 | 29,23,859 | 2.92% |
Sub Total – Hybrid Funds | 2,23,06,567 | 1,99,50,541 | 11.81% |
Data Source: AMFI
The 8 hybrid funds added 23.6 Lakh folios in last 1 year; with 4 out of these 8 reporting double-digit folio growth. The best folio growth was once again in multi asset allocation funds at 41.28%, followed by Arbitrage funds at 24.65%, Equity Savings Funds at 14.97%, and Balanced Advantage Funds (BAFs) at 13.13%. Asset allocation is now a powerful hybrid theme; and arbitrage funds are more as an alternative to liquid funds due to tax advantages. In June 2025, hybrid fund folios grew 11.81% yoy; compared to 11.93% in May, 12.09% in April, and 12.39% in March 2025. Hybrid funds are losing out on folio addition due to equity index levels; but power of allocation is still working the magic for them.
PASSIVE FUNDS ADDED 1.26 CRORE FOLIOS LAST YEAR
Net inflows into passive funds in June 2025 fell sharply once again, with flows into index ETFs being largely very subdued.
Passive Funds | Total Folios Jun-25 | Total Folios Jun-24 | Folio Growth |
Index Funds | 1,34,98,534 | 87,30,472 | 54.61% |
GOLD ETF | 76,54,158 | 54,09,986 | 41.48% |
Other ETFs | 2,06,13,868 | 1,49,07,694 | 38.28% |
FOFs investing overseas | 13,75,052 | 14,53,281 | -5.38% |
Sub Total – Passive Funds | 4,31,41,612 | 3,05,01,433 | 41.44% |
Data Source: AMFI
Fund of Funds (FOF) investing overseas saw contraction in folios for the tenth month in a row. Index funds dominated folio growth at 54.61%, followed by Gold ETFs at 41.48%, while index ETFs grew at a healthy 38.28% in June 2025. Passive fund folio growth in June 2025 stood at 41.44%; compared to 43.29% in May, 45.94% in April, and 48.31% in March 2025. Growth in passive folios may be gradually waning, but that is more due to the preference for active funds amidst a sharp equity market recovery.
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