Mutual Funds Net Equity Investments Touches Record ₹4.9 Trillion in 2025

Despite a volatile equity market environment, Indian mutual funds continued to step up their equity exposure in 2025, reinforcing their role as a stabilising force amid sustained foreign investor selling. 

Key Development 

According to data released by the Securities and Exchange Board of India, mutual funds recorded net equity purchases of ₹4.9 trillion as of December 30, 2025, marking a 13% rise over the previous year.  

This exceeded the earlier record of ₹4.3 trillion seen in 2024 and represented the 5th straight year of positive net equity buying by mutual funds. 

The pace of equity investments has accelerated sharply in recent years. Net purchases stood at ₹1.9 trillion in 2022 and ₹1.7 trillion in 2023, before more than doubling in 2024 and scaling a fresh peak in 2025. 

Statements and Insights 

Regular contributions through systematic investment plans (SIPs) have remained resilient throughout the year, cushioning the impact of market volatility and enabling funds to maintain steady equity allocations. 

Strong domestic inflows have also offset sustained selling by foreign portfolio investors. Domestic institutional investors, including mutual funds, insurance companies and pension funds, together invested over ₹7 trillion in equities during the year, providing crucial support to market stability. 

Impact and Outlook 

The sustained buying has pushed the total equity assets held by mutual funds beyond ₹50 trillion for the 1st time. Data from Prime Database show that equity assets reached ₹50.6 trillion by the end of October, effectively doubling in just over two years. 

This sharp expansion underlines the growing importance of domestic savings in shaping India’s equity markets, even during periods of heightened global uncertainty. 

Read More: Best Mutual Funds for Lump Sum Investments in India for January 2026: Kotak Midcap Fund, Edelweiss Midcap Fund! 

Conclusion 

With record equity purchases in 2025, mutual funds have further strengthened their influence in Indian markets. Supported by robust retail participation and steady SIP inflows, domestic funds are increasingly emerging as a counterbalance to foreign investor volatility. 

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