Are Mutual Fund Folios Approaching the 25-Crore Milestone?
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Synopsis
As mutual fund folios near the 25-crore mark, the latest data reveals both growth and challenges in the market. Discover the dynamics behind the numbers and what this means for investors in our in-depth analysis of the mutual fund landscape.
Key Takeaways
- The total mutual fund folios reached 24.89 crore in August.
- Folio growth slowed to 5.3 percent in FY26.
- Equity schemes dominate with 17.32 crore folios.
- Debt and hybrid schemes show positive growth.
- SIP inflows remain strong at Rs 28,265 crore.
Mumbai, Sep 12 (NationPress) The total mutual fund folios have surged to an impressive 24.89 crore as of August, representing a remarkable 5.3 percent increase over the initial five months of FY26.
This growth rate shows a slowdown compared to the first five months of FY25, during which the folio count soared by approximately 14 percent, escalating from 16.99 crore to 19.4 crore. It's important to note that these figures do not correspond to unique investors, as one individual may possess multiple folios across different schemes.
According to the latest data from the Association of Mutual Funds of India (AMFI), equity schemes dominate the market, comprising 17.32 crore folios.
Experts attribute the moderation in folio growth to a decline in New Fund Offer (NFO) activities, a cautious investor sentiment, and ongoing consolidation of folios. In August, 23 schemes were introduced, garnering Rs 2,859 crore from investors.
Investor engagement has seen a significant rise, with the number of unique permanent account number (PAN) holders investing in mutual funds doubling from 2.1 crore in March 2020 to 4.5 crore by March 2024, as per the data.
Moreover, the growth in folio count slowed down to 5 percent from April to August in FY26, a drop from 13.8 percent for the same timeframe in FY25.
Debt scheme folios increased to 76 lakh in August, rising from 70 lakh in April, bouncing back from a slight downturn last year. Hybrid scheme folios advanced to 1.68 crore in May, up from 1.58 crore in April, indicating a steady interest in diversified funds.
The 'others' category, which includes ETFs, index funds, and passive funds, grew to 4.46 crore folios in August, a notable rise from 4.19 crore in April and 3.47 crore a year prior.
In August, equity-oriented mutual funds reported net inflows of Rs 33,430 crore, marking an uninterrupted streak of 54 months with positive flows. The systematic investment plan (SIP) inflows for August reached Rs 28,265 crore, slightly lower than Rs 28,464 crore recorded in July.
Point of View
It's crucial to acknowledge the evolving landscape of mutual funds in India. The surge in folio numbers reflects a growing interest among investors, but the deceleration in growth rates raises important questions about market dynamics. Our commitment remains to provide transparent and insightful analysis, empowering investors to make informed decisions.
NationPress
12/09/2025
Frequently Asked Questions
What is the current number of mutual fund folios?
As of August, the total number of mutual fund folios has reached 24.89 crore.
How much has the folio count increased in FY26?
The folio count has increased by 5.3 percent over the first five months of FY26.
What factors have affected folio growth?
Factors include lower New Fund Offer (NFO) activity, cautious investor sentiment, and consolidation of folios.
How have debt and hybrid schemes performed?
Debt scheme folios rose to 76 lakh, while hybrid schemes saw an increase to 1.68 crore folios.
What were the SIP inflows in August?
SIP inflows in August stood at Rs 28,265 crore, slightly lower than the previous month.
