Indian mutual funds have invested ₹5.79tn in 2025 so far
Business
Oct 22, 2025
This year, Indian stock markets stayed afloat thanks to domestic mutual funds—even as foreign investors pulled out a massive ₹1.6 trillion by September.
Local funds stepped up, investing a record ₹4.02 trillion and marking five straight years of positive inflows.
Despite all this action, the Nifty 50 index only managed a modest 4% gain.
Domestic institutions step up
The big story here is a shift: more Indians are investing at home, making the market less dependent on foreign money.
SIPs alone brought in ₹2.2 trillion by August, helping cushion the impact when global investors head for the exit.
Domestic institutions—think mutual funds and pension funds—have pumped in ₹5.79 trillion so far this year, giving markets some much-needed stability.
Why the shift to local investments?
With limited options to invest abroad and tax hassles on debt investments, many are turning to Indian equities instead.
Even long-term savings plans like the National Pension System are putting more into stocks (₹1.41 trillion as of August).
So even with worries like US-India trade tensions or rising oil prices, strong local investment is keeping things steady for now.