Mutual Fund Folios Cross 25 Crore Mark in September 2025, Adding 30 Lakh New Investors

In September 2025, investors added 30.14 lakh new folios, continuing the mutual fund industry's steady development in India.  This brought the total number of folios to 25.19 crore, indicating that retail involvement remained consistent in spite of the volatility of the global market and worries about trade tariffs and visa regulations.

Over the 12 months ending September 2025, mutual funds in India added 4.14 crore folios, with active equity and passive funds driving the majority of growth. However, the pace of new additions moderated slightly, mirroring broader market uncertainty.

Overall Mutual Fund Growth Trends

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According to data from AMFI, the total number of mutual fund folios rose to 25.19 crore in September 2025, compared to 21.05 crore a year ago, marking a 19.67% year-on-year (YoY) growth. Open-ended schemes saw a notable 19.74% rise, while closed-ended schemes declined by 7.75%.

Despite strong growth on an annual basis, the monthly expansion rate has been tapering over the past few months. The industry recorded 24.89 crore folios in August, 24.57 crore in July, and 24.13 crore in June, indicating a gradual flattening due to the higher base effect.

Debt Fund Folios Regain Momentum

After a prolonged period of slow growth, active debt funds have rebounded strongly since May 2025. Total debt fund folios reached 76.48 lakh, showing 8.88% YoY growth. The strongest performers were Liquid Funds (20.79%), Money Market Funds (19.55%), and Short Duration Funds (19.50%), highlighting growing preference for short-duration instruments amid yield curve adjustments.

Out of 16 debt categories, 12 recorded positive growth, though categories such as Overnight Funds (-16.83%) and Floater Funds (-1.64%) witnessed declines.

Equity Funds Lead Folio Expansion

Active equity funds continued to dominate investor interest, adding 2.74 crore new folios YoY, marking an 18.59% rise from September 2024. While growth has softened from earlier highs, participation remains robust.

The strongest increases came from Multi Cap Funds (35.02%), Mid Cap Funds (33.30%), and Flexi Cap Funds (26.00%), underscoring investor focus on diversification and alpha generation. All 11 active equity categories posted positive growth.

Hybrid and Passive Funds Maintain Steady Interest

Hybrid funds saw 12.29% YoY growth, led by Multi Asset Allocation Funds (42.65%) and Arbitrage Funds (25.66%), reflecting the increasing appeal of balanced investment strategies.

Passive funds also attracted renewed interest, particularly in Gold ETFs, which grew 51.71% YoY, followed by Other ETFs (29.96%) and Index Funds (25.42%). The total passive folio count rose 31.14% to 4.59 crore, signalling investor confidence in low-cost, diversified instruments.

Conclusion

The mutual fund sector in India remains resilient and diversified in spite of worldwide uncertainty.  The consistent increase in debt, equity, and passive fund participation shows investors' long-term faith in mutual funds as a preferred investment vehicle, even though growth has slowed as a result of the large base and market volatility.