Flexi-Cap Mutual Funds Surge 24% as Sectoral Funds Retain Category Dominance

Driven by strong retail participation, flexi-cap mutual funds recorded a market-leading 24.3% year-on-year (YoY) jump in investor folios, expanding to 2.42 crore accounts by June 2026. Meanwhile, sectoral and thematic funds retained their position as the largest equity mutual fund category, commanding a 15.3% share of total equity folios. Overall mutual fund folios swelled to 27.86 crore, adding 20.31 lakh accounts in June alone, reflecting sustained investor confidence across long-term equity and hybrid schemes. Key Financial & News Vocabulary Folio: A unique identification number/account assigned to track a mutual fund investor's holdings across schemes. Year-on-Year (YoY): A financial metric comparing performance or growth over two identical timeframes across consecutive years. Flexi-Cap Funds: Open-ended equity schemes that can dynamically allocate capital across large-, mid-, and small-cap stocks without strict category constraints. Sectoral / Thematic Funds: Mutual fund schemes that focus investments strictly on a single industry sector (e.g., Banking, Tech) or macro theme (e.g., Manufacturing, ESG). Retail Participation: The volume of market activity generated by non-institutional, individual investors.