India’s mutual fund industry has reached another major milestone, with net equity investments for 2025 crossing the ₹4 trillion mark. As of September, domestic fund managers have deployed ₹4.02 trillion into equities, continuing a strong run of inflows despite market volatility and foreign investor withdrawals. This performance underlines the growing confidence of Indian retail investors in equity markets.
The year 2025 marks the fifth consecutive year of positive equity flows from mutual funds. While mutual funds invested a record ₹4.3 trillion in equities during 2024, they are now on track to surpass that level and potentially cross ₹5 trillion if the current pace sustains.
This achievement comes against the backdrop of foreign portfolio investors (FPIs) pulling out around ₹1.6 trillion from domestic equities.
Systematic investment plans (SIPs) have played a central role in stabilising equity flows this year. Between January and August 2025, SIPs contributed ₹2.2 trillion in gross inflows, with nearly 90% directed towards equity-focused products. The total net inflows into active equity funds, including SIPs and lump-sum investments, stood at approximately ₹2.4 trillion during the same period.
SIP investments have provided a consistent inflow stream, helping cushion the market against FPI-driven volatility. Fund managers have also rebalanced their portfolios through hybrid schemes and cash position adjustments to align with market movements.
Read More: AMFI Data: 11 Fund Houses Manage AUM Over ₹2 Lakh Crore as of September 2025!
India’s mutual fund industry has emerged as a stabilising force in 2025, offsetting foreign outflows and supporting market resilience. With equity investments already crossing ₹4 trillion, the year could end as a record-breaking one for domestic inflows. If current trends continue, mutual funds are not only poised to exceed last year’s record but may also reshape the future of retail participation in Indian capital markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Oct 7, 2025, 3:21 PM IST
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