Mutual funds add 44 lakh folios in July 2025 to touch 24.57 Crore

12 Aug 2025 , 11:20 AM

MUTUAL FUNDS ADD 44 LAKH FOLIOS IN JULY 2025

For the month of July 2025, a total of 44 Lakh new folios were added, taking the total folio count to 24.57 Crore. This is on top of the 50 Lakh folios already added in May and June 2025. In short, since the clean-up of defunct SIP folios was completed in April 2025, Indian mutual funds have already added 94 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 bounced back to 30 Lakh folios and further to 44 lakh folios in July 2025. Over last 11 years, mutual fund folios have grown 6.22 times from 3.95 Crore to 24.57 Crore; a sharp boost to retail MF appetite.

MF FOLIOS: MACRO PICTURE FOR JULY 2025

Here is the macro picture of mutual fund folio growth for July 2025.

Macro picture	Total Folios Jul-25	Total Folios Jul-24	Folio Growth
Open ended Funds	24,52,20,747	19,78,60,440	23.94%
Close-Ended and Interval Funds	5,03,592	5,45,854	-7.74%
Grand Total	24,57,24,339	19,84,06,294	23.85%

Data Source: AMFI

At a macro level, the total number of mutual fund folios as of July 2025 stood at 24.57 Crore; compared to 24.13 Crore in June, 23.83 Crore in May, and 23.63 Crore in April 2025. On a yoy basis, growth in total folios for July 2025 stood at 23.85%; compared to 26.33% in June, 28.15% in May, and 30.21% in April 2025. While Folio Growth rate has been falling, this can be partially attributed to the lag effect of the SIP clean-up exercise.

ACTIVE DEBT FUND FOLIOS: SMART GROWTH IN JULY 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 July 2025 grew by 7.06%; compared to 3.34% in June, 0.89% in May, -1.15% in April, and -3.00% in March 2025. Overnight funds, credit risk funds, floater funds, and Banking & PSU Funds saw contraction in folios.

Active Debt Funds	Total Folios Jul-25	Total Folios Jul-24	Folio Growth
Long Duration Fund	96,032	69,014	39.15%
Gilt Fund	2,32,098	1,92,867	20.34%
Money Market Fund	5,09,995	4,33,155	17.74%
Liquid Fund	20,82,344	17,82,584	16.82%
Short Duration Fund	5,06,036	4,38,664	15.36%
Ultra Short Duration Fund	7,24,730	6,32,446	14.59%
Dynamic Bond Fund	2,39,570	2,16,166	10.83%
Gilt Fund with 10-Y duration	39,036	36,301	7.53%
Medium Duration Fund	2,30,916	2,17,360	6.24%
Medium to Long Duration Fund	1,04,610	98,618	6.08%
Corporate Bond Fund	5,60,211	5,38,313	4.07%
Low Duration Fund	8,54,453	8,43,900	1.25%
Banking and PSU Fund	2,40,020	2,43,634	-1.48%
Floater Fund	1,99,862	2,05,947	-2.95%
Credit Risk Fund	1,85,095	1,93,899	-4.54%
Overnight Fund	7,06,888	8,73,876	-19.11%
Sub Total – Active Debt Funds	75,11,896	70,16,744	7.06%

Data Source: AMFI

Of the 16 categories of debt funds, 12 categories showed positive growth in folios, with 7 of these  categories growing at over 10% yoy in July 2025 and 10 growing in over 5%. The leader in terms of folio growth was, Long Duration Funds at 39.15% yoy, followed by gilt funds at 20.34%. Overnight funds saw folio contraction of -19.11% and credit risk folios contracted -4.54% yoy. Folios growth quality of debt funds improved sharply in July 2025.

ACTIVE EQUITY FUNDS ADD 3.38 CRORE FOLIOS YOY

In July 2025, active equity funds added 3.38 Crore folios; compared to 3.51 Crore folios in June, 3.71 Crore folios in May, 3.94 Crore folios in April, and 4.10 Crore folios in March 2025. For active equity funds, the yoy folio expansion for July 2025 further tapered to 23.67%; compared to 26.39% in June, 28.80% in May, 31.39% in April, and 33.38% in March 2025. Rate of folio growth has progressively fallen amidst higher volatility and index highs.

Active Equity Funds	Total Folios Jul-25	Total Folios Jul-24	Folio Growth
Mid Cap Fund	2,25,64,162	1,60,29,834	40.76%
Multi Cap Fund	1,03,57,646	73,64,238	40.65%
Sectoral/Thematic Funds	3,17,71,659	2,47,86,304	28.18%
Flexi Cap Fund	1,94,48,661	1,53,77,119	26.48%
Small Cap Fund	2,62,55,276	2,09,62,913	25.25%
Large & Mid Cap Fund	1,25,11,660	1,00,77,659	24.15%
Value Fund/Contra Fund	85,47,004	70,16,092	21.82%
Dividend Yield Fund	12,04,368	9,91,819	21.43%
Large Cap Fund	1,64,44,374	1,43,57,880	14.53%
Focused Fund	52,98,700	50,71,314	4.48%
ELSS	1,68,73,721	1,64,63,700	2.49%
Sub Total – Active Equity Funds	17,12,77,231	13,84,98,872	23.67%

Data Source: AMFI

In July 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 came from mid-cap funds 40.76%, multi-cap funds at 40.65%; followed by Sectoral / Thematic funds at 28.18%, and flexi-cap funds at 26.48%. A total of 5 out of 11 equity fund categories saw folio accretion of over 25%. Alpha hunting theme is back with a bang.

HYBRID FUNDS – FROM ARBITRAGE TO GOOD OLD ALLOCATION

All the 8 Hybrid and solution funds showed yoy growth in folios; although only 4 out of 8 hybrid fund category funds managed double-digit yoy growth in July 2025.

Hybrid / Solution Funds	Total Folios Jul-25	Total Folios Jul-24	Folio Growth
Multi Asset Allocation Fund	34,59,194	24,26,363	42.57%
Arbitrage Fund	6,64,338	5,32,819	24.68%
Equity Savings Fund	5,00,437	4,31,125	16.08%
Dynamic Asset Allocation/BAF	54,25,213	47,70,961	13.71%
Aggressive Hybrid Fund	59,12,528	55,18,271	7.14%
Conservative Hybrid Fund	5,66,649	5,45,408	3.89%
Children’s Fund	31,17,371	30,02,653	3.82%
Retirement Fund	30,16,170	29,36,417	2.72%
Sub Total – Hybrid Funds	2,26,61,900	2,01,64,017	12.39%

Data Source: AMFI

The 8 hybrid funds added 24.98 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 42.57%, followed by Arbitrage funds at 24.68%, Equity Savings Funds at 16.08%, and Balanced Advantage Funds (BAFs) at 13.71%. Asset allocation is now a powerful hybrid theme; and arbitrage funds are more an alternative to liquid funds due to tax advantages. In July 2025, hybrid fund folios grew 12.39%; compared to 11.81%  in June, 11.93% in May, and 12.09% in April 2025. After several months of fall in growth, Hybrid funds have seen yoy folio growth returning back in July 2025.

PASSIVE FUNDS ADDED 1.16 CRORE FOLIOS LAST YEAR

Net inflows into passive funds in July 2025 bounced back, with folio growth being led by the redoubtable gold ETFs.

Passive Funds	Total Folios Jul-25	Total Folios Jul-24	Folio Growth
GOLD ETF	78,69,544	55,27,649	42.37%
Index Funds	1,36,98,815	97,35,676	40.71%
Other ETFs	2,08,10,327	1,54,90,196	34.35%
FOFs investing overseas	13,91,034	14,27,286	-2.54%
Sub Total – Passive Funds	4,37,69,720	3,21,80,807	36.01%

Data Source: AMFI

Fund of Funds (FOF) investing overseas saw contraction in folios for the eleventh month in a row. Gold ETFs dominated folio growth at 42.37%, followed by Index Funds at 40.71%, while index ETFs grew at a healthy 34.35% in July 2025. Passive fund folio growth in July 2025 stood at 36.01%; compared to 41.44% in June, 43.29% in May, and 45.94% in April 2025. Growth in passive folios may be gradually waning, but this can change at short notice.