Mutual Funds folio accretion tapers to 14.01 lakhs in April 2026

Mutual Funds folio accretion tapers to 14.01 lakhs in April 2026

MUTUAL FUNDS ADD 14.01 LAKH FOLIOS IN APRIL 2026

Open ended funds added just 14.01 lakh folios in April, compared to over 33 lakhs in March. Clearly, the combination of market caution at higher levels and a spike in the SIP stoppage ratio to above 101% for 2 months in succession, has tempered the growth in folios. Monthly folio accretion of open-ended funds was above 50 lakhs in January 2026 and has been steadily falling since. Folio accretion was positive across categories, but the pace has slowed. Here are the details of folio addition across categories in April 2026.

While debt funds added a robust 2.24 lakh folios, equity funds added 14.06 lakh folios in the month of April 2026. Even hybrid allocation funds did well, adding a total of 2.97 lakh folios in the month. However, the real pressure on folio accretion was seen in passive funds and specifically in index ETFs. In fact, passive funds saw folio contraction in April 2026 of (5.26) lakh; largely driven by contraction of (8.63) lakh folios in index ETFs amid rising caution and volatility in the indices. Here are the top 5 in each category in terms of folio accretion ratio.

ACTIVE DEBT FUND FOLIOS: ACTION MAINLY AT THE SHORT END

For the month of April 2026, active debt funds added a total of 2.24 lakh folios or 2.71% 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, 12 categories saw folio accretion, while the other 4 categories saw folio contraction. If you look at the top 5 active debt fund categories in terms of folio accretion in April 2026, Corporate Bond funds are the only one at the long end. The other 4 are at the short end of the yield curve. Folio contraction was most evident in Long Duration Funds, Gilt Funds, and 10-Year Constant Duration Gilt Funds. Investors appear to be wary of longer duration debt, as higher inflation is likely to harden interest rates in the economy.

ACTIVE EQUITY FUNDS FOCUS ON ALLOCATION AND ALPHA

For the month of April 2026, active equity funds added a total of 14.06 lakh folios or 0.77% growth over the previous month. Here are the top 5 best performers by folio accretion.

Data Source: AMFI

Like in the case of flows, even folio accretion is driven by 2 interesting themes. In the above list, flexi-cap funds, large & mid-cap funds, and multi-cap funds represent a cap-diversification strategy. At the same time; mid-cap funds and small cap funds represent alpha hunting; as an aggressive strategy. Once again, ELSS funds and dividend yield funds lagged on folio accretion. Folio accretion in sectoral funds has largely slowed, despite having highest active equity folios.

HYBRID FUNDS – FOLIOS FOCUS ON ARBITRAGE AND ALLOCATION

For the month of April 2026, hybrid allocation funds added a total of 2.97 lakh folios or 1.17% 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, Arbitrage Funds have dominated, albeit on a smaller base. However, arbitrage fund flows are more cyclical in nature. Others in terms of high folio growth are the allocation fund categories like the multi asset allocation funds (MAAFs), Aggressive Hybrids, and BAFs. MAAFs have been attractive in recent months due to its exposure to assets like gold and silver.

PASSIVE FUNDS WITNESS CONTRACTION IN INDEX ETF FOLIOS

For the month of April 2026, passive funds saw contraction of (5.26) lakh folios or -0.92% over the previous month. Here are the top performers by folio accretion.

Data Source: AMFI

In the last few months, we saw passive investors pivoting from gold and silver ETFs to equity index ETFs. Post the sharp correction, there has once again been a pivot from passive strategies to active strategies. That explains the contraction in folios in index ETFs in April. FOFs investing overseas have seen a surge in folios in April, albeit on a small base. It is an indication that investors are looking more closely at global diversification of risk!