Mutual Funds add 33.63 Lakh folios in the month of March 2026

Mutual Funds add 33.63 Lakh folios in the month of March 2026

MUTUAL FUNDS ADD 33.63 LAKH FOLIOS IN MARCH 2026

For the month of March 2026, folios addition at 33.63 Lakhs was lower than 42.58 Lakh and 50 Lakh folios in the previous two months. This can be attributed to market uncertainty and a much higher SIP stoppage ratio at over 101%. If we just look at the open-ended funds, then a total of 33.67 lakh folios were added, with closed-ended fund folios contracting. Here is quick look at folio addition across categories in March 2026.

While debt funds added a modest 0.91 lakh folios, equity funds added 15.32 lakh folios in the month of March 2026. Even hybrid allocation funds did well, adding a total of 3.46 lakh folios in the month. However, it was another strong performance by passive funds. They added 13.98 Lakh folios in March, albeit lower than the 20.16 lakh folios in February. Within the passive space, the momentum of folio additions in gold and silver ETFs has come down sharply. Here are the top 5 in each category in terms of folio accretion ratio.

ACTIVE DEBT FUND FOLIOS: ACTION AT SHORT AND LONG END

For the month of March 2026, active debt funds added a total of 0.91 lakh folios or 1.12% over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

Out of the 16 categories of debt funds, only 3 categories saw folio accretion, while the other 13 categories saw folio contraction. If you look at the top 5 active debt fund categories in terms of folio accretion in March 2026, credit risk funds and corporate bond funds are at the longer end, while other 3 are at the shorter end of the yield curve. Folio contraction was most evident in Long Duration Funds, Gilt Funds, and Dynamic Bond Funds. Investors appear to be wary of longer duration debt, when the macros are uncertain and rate hikes are quite likely.

ACTIVE EQUITY FUNDS FOCUS STAYS ON ALLOCATION AND ALPHA

For the month of March 2026, active equity funds added a total of 15.32 lakh folios or 0.85% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

There are 2 themes in equity funds folio accretion in March 2026. In the above list, flexi-cap funds, large & mid-cap funds, and multi-cap funds represent allocation. At the same time; mid-cap funds and small cap funds represent alpha hunting. These have consistently been the equity themes in the last few months. ELSS funds and dividend yield funds lagged on folio accretion; and are in search of a better narrative for investors.

HYBRID FUNDS – FOLIOS FOCUS ON MULTI-ASSET ALLOCATION

For the month of March 2026, hybrid allocation funds added a total of 3.46 lakh folios or 1.39% over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

If you look at top fund categories in terms of folio accretion, MAAFs continue to lead by a huge margin. Their attractiveness in recent times is due to their exposure to gold and silver. While MAAFs, BAFs, and Children’s Funds represent allocation, aggressive hybrid funds represent 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 March 2026, passive funds added a total of 13.98 lakh folios or 2.51% over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

For a change, equity index ETFs go the better of gold ETFs in terms of folio accretion. The folio accretion of passive funds has fallen in March 2026, largely due to the tapering of flows into gold ETFs. As a category, passives are emerging as an alternative to active equity funds. However, the undertone is shifting from passive precious metals to passive equity and global FOFs. That is the difference in March 2026.