Flexi cap funds post fastest folio growth; sectoral funds remain largest equity category
Small-cap funds led monthly folio additions in June, followed by mid-cap and flexi-cap schemes
Overall mutual fund folios across all scheme categories increased by 20.31 lakh in June to 27.86 crore, according to AMFI’s monthly note.
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Sectoral and thematic funds remained the largest equity mutual fund category by investor accounts at the end of June 2026, accounting for 15.3 percent of all retail equity-oriented folios. Flexi-cap funds, meanwhile, posted the fastest year-on-year folio growth among equity categories, with investor accounts rising 24.3 percent, according to AMFI data compiled by ICRA.
A folio is an investment account assigned to a mutual fund investor. Since an investor can hold multiple folios across schemes or fund houses, folio counts are widely used as an indicator of investor participation rather than unique investors.
Overall mutual fund folios across all scheme categories increased by 20.31 lakh in June to 27.86 crore, according to AMFI’s monthly note. Of these, retail folios in equity, hybrid and solution-oriented schemes, the segment that largely captures long-term individual investors, rose to 21.22 crore from 21.03 crore in May.
Sectoral and thematic funds had 3.25 crore folios in June, followed by small-cap funds at 2.87 crore, mid-cap funds at 2.55 crore and flexi-cap funds at 2.42 crore. Together, these four categories accounted for more than half of the industry’s retail equity-oriented folios.
Flexi-cap funds added more than 47 lakh folios over the past year, taking their total to 2.42 crore from 1.95 crore in June 2025. They were also the only equity category to record year-on-year folio growth of more than 20 percent during the period. By comparison, multi-cap funds recorded the second-highest growth at 13.2 percent, followed by mid-cap funds at 13.1percent and large & mid-cap funds at 12.4 percent.
While flexi-cap funds led year-on-year growth, small-cap schemes recorded the highest monthly addition of investor accounts in June, adding 2.73 lakh folios. Mid-cap funds followed with 2.54 lakh additions, while flexi-cap funds added 2.09 lakh folios, reflecting continued retail appetite for diversified equity strategies.
Inflows mirror folio trends
The folio trends were reflected in monthly inflows as well. Mid-cap funds attracted the highest net inflows in June at Rs 6,090 crore, followed by small-cap funds at Rs 5,602 crore and flexi-cap funds at Rs 5,231 crore. Together, the three categories accounted for nearly 58percent of the Rs 28,973 crore that flowed into equity mutual funds during the month.
Large-cap funds posted relatively modest year-on-year folio growth of 4.2 percent, while focused funds and value/contra funds registered gains of around 5percent. Although sectoral and thematic funds remained the largest equity category by investor accounts, their folio growth slowed to just 2.2percent over the past year, suggesting moderation after the surge in investor interest seen in recent years.
Tax-saving funds lose traction
ELSS funds continued to lose investor accounts, with folios declining 3.5 percent year-on-year as the shift towards the new tax regime reduced the appeal of tax-saving mutual funds. Dividend yield funds also recorded a marginal decline in folios.
Overall, equity mutual funds received Rs 28,973 crore of net inflows in June, extending the streak of positive inflows to 64 consecutive months. Equity assets under management rose 3.3 percent month-on-month to Rs 37.34 lakh crore, supported by sustained inflows and mark-to-market gains.