Mutual Fund add 42.58 Lakh folios in the month of February 2026

MUTUAL FUNDS ADD 42.58 LAKH FOLIOS IN FEBRUARY 2026

For the month of February 2026, folios addition at 42.58 Lakhs was lower than the January folio addition of 50 Lakh folios. However, that can be attributed to the fewer number of days in the month of February. March should offer a more comparable time frame. If we just look at the open-ended funds, then a total of 42.59 lakh folios were added. Here is how the break-up of folio addition across categories looked like in the month of February 2026.

While debt funds added a modest 1.28 lakh folios, equity funds added 16.64 lakh folios in the month of February. Even hybrid allocation funds did well, adding a total of 4.51 lakh folios in the month. However, the standout performer for the month was the passive fund set, which added a total of 20.16 lakh folios in the month. We do not get to see this often; but passive funds have added more folios in February than the active equity funds. That is a clear shift! Let us now turn to how the top 5 in each category dominated in terms of folio addition.

ACTIVE DEBT FUND FOLIOS: ACTION FOCUSED AT THE SHORT END

For the month of February 2026, active debt funds added a total of 1.28 lakh folios or 1.58% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

If you look at the top 5 active debt fund categories in terms of folio accretion in February 2026, only credit risk fund are at the longer end of the yield curve. Rest are at the short end. The interest in credit risk funds could be from their interesting performance in the last few months. What about the bottom list in folio accretion in February 2026? Long duration funds, gilt funds, dynamic bond funds, and corporate bond funds saw compression in folios. Clearly, amidst the geopolitical uncertainty, there appears an unwillingness to commit to longer term debt.

ACTIVE EQUITY FUNDS SEE FOCUS ON ALLOCATION AND ALPHA

For the month of February 2026, active equity funds added a total of 16.64 lakh folios or 0.93% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

There are 2 themes in the equity funds showing the best folio accretion in February 2026. In the above list, flexi-cap funds, large & mid-cap funds, and multi-cap funds represent allocation. On the other hand, mid-cap funds and small cap funds represent alpha. That appears to be the two underlying themes. What about funds at the bottom. ELSS funds and dividend yield funds lagged on folio accretion. Clearly, they need a much better narrative for investors.

HYBRID FUNDS – FOLIOS FOCUS ON MULTI-ASSET ALLOCATION

For the month of February 2026, hybrid allocation funds added a total of 4.51 lakh folios or 1.84% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

If you look at the top fund categories in terms of folio accretion, MAAFs continue to lead. They have been very attractive in last two years due to their exposure to gold and silver. While MAAFs and BAFs represent allocation, the aggressive and conservative hybrid funds represent the two extremes of a directional view. Arbitrage funds are less of a hybrid fund and more of debt funds, which are increasingly emerging as a more lucrative proxy for liquid funds.

PASSIVE FUNDS LEAD THE WAY IN FOLIO ACCRETION

For the month of February 2026, passive funds added a total of 20.16 lakh folios or 3.75% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

It was once again the story of gold ETFs leading the way, but then folio accretion was strong across index ETFs, international FOFs, and also for index funds. The folio accretion of passive funds is substantially higher than the folio accretion of active equity funds in the month of February 2026. It clearly underlines that amidst the volatility in the markets and the rising tide of geopolitical risk; passive funds are emerging as a viable alternative. That may be the good news for investors!