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 despite global market volatility and concerns over trade tariffs and visa regulations.
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.
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.
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 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.
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The mutual fund industry’s September 2025 data highlights steady investor participation and evolving investment preferences. The combination of strong equity inflows, renewed debt fund momentum, and expanding passive investments indicates a maturing and diversified market base.
Despite a moderation in growth rates due to a higher base, India’s mutual fund industry continues to deepen its retail penetration. The sustained rise in folios underscores long-term investor confidence and the growing financialisation of household savings.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Oct 13, 2025, 6:47 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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