MUTUAL FUNDS ADD 40.81 LAKH FOLIOS IN OCTOBER 2025
For the month of October 2025, a total of 40.81 Lakh new folios were added, taking the total folio count to 25.60 Crore. For the full year to October 2025, Indian mutual funds added 3.95 Crore folios; across active debt, equity and passive funds. There was a marginal slowing of folio addition in October 2025 on a yoy basis, but that can be attributed to a normal loss of momentum at higher levels. In October 2025, while over 60% of the folio growth came from the SIPs, the balance 40% came from lumpsum flows.
MF FOLIOS: MACRO PICTURE FOR OCTOBER 2025
Here is the macro picture of mutual fund folio growth for October 2025.
| Macro picture | Total Folios Oct-25 | Total Folios Oct-24 | Folio Growth |
| Open Ended Schemes | 25,55,07,746 | 21,59,65,231 | 18.31% |
| Closed-Ended Schemes | 4,96,069 | 5,37,573 | -7.72% |
| Total of all schemes | 25,60,03,815 | 21,65,02,804 | 18.25% |
Data Source: AMFI
At a macro level, the total number of mutual fund folios as of October 2025 stood at 25.60 Crore; compared to 25.19 Crore in September, 24.89 Crore in August, and 24.57 Crore in July 2025. On a yoy basis, growth in total folios for October 2025 stood at 18.25%; compared to 19.67% in September, 21.70% in August, and 23.85% in July 2025. Folio Growth rate may be slackening. While that is partly due to the folio clean-up that happened earlier this year, there is also the element of large base, which tends to slacken pace of growth.
ACTIVE DEBT FUND FOLIOS: STILL QUITE IMPRESSIVE
Debt fund folio growth turned around in May 2025 after a long spell of folio underperformance. It has been getting progressively better. Debt fund folios for October 2025 grew 10.23% yoy; compared to 8.88% in September, 8.41% in August, 7.06% in July, and 3.34% in June 2025. Overnight funds, floater funds, and Banking & PSU Funds have seen folios contracting in October on a yoy basis.
| Active Debt Funds | Total Folios Oct-25 | Total Folios Oct-24 | Folio Growth |
| Liquid Fund | 22,78,013 | 18,13,501 | 25.61% |
| Short Duration Fund | 5,39,194 | 4,41,637 | 22.09% |
| Money Market Fund | 5,18,211 | 4,33,304 | 19.60% |
| Ultra Short Duration Fund | 7,44,239 | 6,46,163 | 15.18% |
| Medium Duration Fund | 2,36,962 | 2,11,734 | 11.91% |
| Long Duration Fund | 89,830 | 81,956 | 9.61% |
| Corporate Bond Fund | 5,73,717 | 5,31,745 | 7.89% |
| Gilt Fund | 2,22,590 | 2,08,193 | 6.92% |
| Dynamic Bond Fund | 2,37,849 | 2,23,129 | 6.60% |
| Gilt Fund (10-Y duration) | 38,270 | 36,136 | 5.91% |
| Low Duration Fund | 8,50,992 | 8,32,921 | 2.17% |
| Credit Risk Fund | 1,91,121 | 1,87,979 | 1.67% |
| Medium to Long Duration Fund | 1,03,489 | 1,03,352 | 0.13% |
| Banking and PSU Fund | 2,39,409 | 2,40,644 | -0.51% |
| Floater Fund | 1,98,921 | 2,02,188 | -1.62% |
| Overnight Fund | 7,17,799 | 8,64,240 | -16.94% |
| Sub Total – Active Debt Funds | 77,80,606 | 70,58,822 | 10.23% |
Data Source: AMFI
Of the 16 categories of debt funds, 13 categories showed positive growth in folios, with 5 of these categories growing in double digits in October 2025 and 10 categories growing over 5%. The leaders in terms of folio growth were Liquid Funds at 25.61%, short duration funds 22.09%, money market funds at 19.60%, and Ultra Short Duration Funds 15.18%. Folio growth has been largely concentrated at the short end of the yield curve.
ACTIVE EQUITY FUNDS ADD 2.49 CRORE FOLIOS YOY
In October 2025, active equity funds added 2.49 Crore folios; compared to 2.74% in September, 3.04 Crore in August, and 3.38 Crore folios in July 2025. Clearly, the momentum is tapering at higher levels. The yoy folio expansion for active equity funds in October 2025 fell to 16.49%; compared to 18.59% in September, 21.25% in August, and 23.67% in July 2025. Volatility, valuations, and exhaustion appear to be hitting equity fund folio growth.
| Active Equity Funds | Total Folios Oct-25 | Total Folios Oct-24 | Folio Growth |
| Multi Cap Fund | 1,09,12,552 | 83,35,703 | 30.91% |
| Flexi Cap Fund | 2,11,82,395 | 1,64,04,408 | 29.13% |
| Mid Cap Fund | 2,35,35,313 | 1,83,50,102 | 28.26% |
| Large & Mid Cap Fund | 1,29,89,734 | 1,08,99,702 | 19.18% |
| Small Cap Fund | 2,70,17,320 | 2,29,90,319 | 17.52% |
| Value Fund/Contra Fund | 87,88,244 | 77,37,187 | 13.58% |
| Sectoral/Thematic Funds | 3,18,11,396 | 2,83,54,673 | 12.19% |
| Large Cap Fund | 1,66,96,893 | 1,51,50,734 | 10.21% |
| Dividend Yield Fund | 11,94,639 | 11,36,234 | 5.14% |
| Focused Fund | 53,59,834 | 51,25,180 | 4.58% |
| ELSS | 1,66,44,818 | 1,67,13,074 | -0.41% |
| Sub Total – Active Equity Funds | 17,61,33,138 | 15,11,97,316 | 16.49% |
Data Source: AMFI
In October 2025, all 10 out of 11 active equity fund categories saw accretion in folios; ELSS folios contracted. Also, folios growth was in single digits for Dividend Yield Funds and focused funds. The big boost to folio accretion came from multi-cap funds 30.91%, flexi-cap funds 29.13%, and mid-cap funds at 28.6%. Just 3 out of 11 equity fund categories saw folio accretion of over 20%. Alpha hunting is taking a back seat, in favour of allocation.
HYBRID FUNDS – FOLIO ACCRETION FAVOURS 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 October 2025.
| Hybrid / Solution Funds | Total Folios Oct-25 | Total Folios Oct-24 | Folio Growth |
| Multi Asset Allocation Fund | 38,61,455 | 26,97,332 | 43.16% |
| Arbitrage Fund | 7,05,317 | 5,57,388 | 26.54% |
| Equity Savings Fund | 5,17,166 | 4,61,251 | 12.12% |
| Dynamic Asset Allocation/BAF | 55,30,506 | 49,81,730 | 11.02% |
| Balanced Hybrid Fund | 60,44,444 | 56,41,570 | 7.14% |
| Children’s Fund | 31,55,666 | 30,24,509 | 4.34% |
| Conservative Hybrid Fund | 5,73,771 | 5,54,084 | 3.55% |
| Retirement Fund | 30,32,112 | 29,68,142 | 2.16% |
| Sub Total – Hybrid Funds | 2,34,20,437 | 2,08,86,006 | 12.13% |
Data Source: AMFI
The 8 hybrid funds added 25.34 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 43.16%, followed by Arbitrage funds at 26.54%, Equity Savings Funds at 12.12%, and Balanced Advantage Funds (BAFs) at 11.02%. Asset allocation is now the big hybrid theme. In October 2025, hybrid fund folios grew 12.13%; compared to 12.29% in September, 12.30% in August, and 12.39% in July 2025. Hybrid fund folio growth has been flat to stable.
PASSIVE FUNDS ADDED 1.14 CRORE FOLIOS YOY
Passive funds have seen a revival of interest in the last 3 months and the surge is evident in October too; thanks to gold and silver ETFs.
| Passive Funds | Total Folios Oct-25 | Total Folios Oct-24 | Folio Growth |
| GOLD ETF | 95,75,399 | 59,13,163 | 61.93% |
| Other ETFs | 2,28,59,737 | 1,76,22,661 | 29.72% |
| Index Funds | 1,41,79,440 | 1,19,03,173 | 19.12% |
| FOFs investing overseas | 15,58,989 | 13,84,090 | 12.64% |
| Sub Total – Passive Funds | 4,81,73,565 | 3,68,23,087 | 30.82% |
Data Source: AMFI
Gold ETFs, once again, dominated folio growth at 61.93%, followed by Index ETFs at 29.72%, and index funds at 19.12% in October 2025. Now, even FOFs investing overseas are seeing yoy folio growth. Passive fund folio growth in October 2025 stood at 30.82%; compared to 31.14% in September, 32.58% in August, and 36.01% in July 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 broaden.