Active equity schemes demonstrated strong investor confidence during the February-April 2026 period, adding approximately 1.5 million investment accounts, according to reports from Business Standard. This marked a significant shift from the previous trend where commodity ETFs had dominated new folio additions. The active equity resurgence reflects improving market sentiment and attractive entry points created by recent corrections.
In stark contrast, gold and silver ETFs experienced a sharp deceleration in new folio additions during the same period, as reported by Business Standard. The commodity ETF segment witnessed a net decline of nearly 20,000 accounts in April alone. This represents a significant slowdown from the record-breaking performance seen between September 2025 and February 2026, when investors rushed to gain precious metals exposure amid sharp rallies in gold and silver prices.
Despite mutual funds' growing dominance, Life Insurance Corporation (LIC) maintains its position as the single-largest standalone asset manager by a significant margin, with its equity assets being at least double that of the largest mutual fund. Based on available disclosures, LIC's total holdings are valued at ₹15.11 trillion, with the largest position being in Reliance Industries at ₹1.2 trillion. The insurer also holds stakes worth over ₹50,000 crore each in State Bank of India, Larsen and Toubro, ITC, and Infosys. However, LIC's portfolio management faces structural challenges, as the company is subject to different regulatory constraints compared to private mutual funds.
The current trend shows flexicap, midcap, and smallcap funds continuing to account for the bulk of new folio additions, as reported by Business Standard. This preference for diversified equity exposure reflects investors' renewed confidence in active management strategies and their willingness to take on higher risk for potentially better returns. The shift away from commodity ETFs indicates a return to more traditional equity-focused investment approaches, while mutual funds recorded SIP investments worth ₹32,087 crore in March 2026. Mutual fund assets have tripled since the pandemic to ₹79 trillion as of March 2026.
