Mutual Fund Folios Hit Record 24.89 Crore in August: What’s Driving the Growth?
Mumbai, Sep 12: India’s mutual fund market just smashed a new milestone! The total number of mutual fund folios soared to a whopping 24.89 crore in August, showing a solid 5.3% jump over the first five months of FY26. This surge highlights how more everyday Indians are diving into mutual fund investments, but keep in mind—these numbers count folios, not unique investors. One person can own several folios across different schemes.
Equity schemes stole the show, making up the biggest chunk with 17.32 crore folios, as per the latest data from the Association of Mutual Funds in India (AMFI). Experts point out that while growth is strong, it has slowed a bit from last year. In the first five months of FY25, folios grew by about 14%, climbing from 16.99 crore to 19.4 crore. This year’s 5% rise from April to August comes amid fewer new fund offers (NFOs), cautious vibes from investors, and some folks merging their folios for simplicity. Just 23 schemes launched in August, pulling in Rs 2,859 crore from eager investors.
But the real story? More people are getting involved. The number of unique PAN holders in mutual funds has doubled—from 2.1 crore in March 2020 to 4.5 crore in March 2024. This boom in investor participation shows mutual funds are becoming a go-to for building wealth in India.
Diving deeper into categories, debt scheme folios bounced back nicely to 76 lakh in August, up from 70 lakh in April. This marks a recovery after a small dip last year. Hybrid schemes, which mix equity and debt for balanced risk, saw folios climb to 1.68 crore in May from 1.58 crore in April—slightly better than the previous year and a sign of steady interest in diversified mutual fund options.
The "others" bucket, including popular picks like ETFs, index funds, and passive funds, exploded to 4.46 crore folios in August. That’s a big leap from 4.19 crore in April and way up from 3.47 crore in August last year, proving these low-cost, hands-off investments are gaining massive traction.
On the money front, equity mutual funds raked in net inflows of Rs 33,430 crore in August, extending their impressive run of 54 straight months of positive flows. SIP investments, the disciplined way many Indians invest monthly, hit Rs 28,265 crore— just a tad lower than Rs 28,464 crore in July. If you’re thinking about starting your SIP in mutual funds, this steady trend could be your cue!
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