Mutual Funds' Share in NSE-Listed Companies Hits All-Time High of 11.46%; FIIs Plunge to 14-Year Low of 16.13%

As of March 31, 2026, the share of Domestic Mutual Funds (MFs) in companies listed on the National Stock Exchange (NSE) has reached an all-time high of 11.46%, as per PRIME Database Group report.  

This marks the 11th consecutive quarter of growth for Mutual Funds, up from 11.10% on December 31, 2025.  

In contrast, Foreign Institutional Investors (FIIs) have seen their share decline to a 14-year low of 16.13%, down from 16.60% at the end of 2025. 

Shift in Investment Dynamics 

The gap between MFs and FIIs has narrowed significantly, dropping by 83 basis points in the first quarter of 2026 to just 4.67%.  

This is a substantial reduction from 9.34% at the end of 2023. Historically, the gap was as wide as 17.14% in March 2015, with FIIs holding 20.70% and MFs at 3.56%. 

Individual investors, including retail and High Net Worth Individuals (HNIs), have seen their share in NSE-listed companies fall to a 5-year low of 9.11% as of March 31, 2026, down from 9.28% at the end of 2025.  

Retail investors' share decreased from 7.25% to 7.12%, while HNIs' share dropped from 2.03% to 1.99%. 

Domestic Institutional Investors on the Rise 

Domestic Institutional Investors (DIIs), which include MFs, banks, insurance companies, and alternative investment funds, have also reached a new high.  

Their combined share in NSE-listed companies rose to 19.24% by March 31, 2026, up from 18.72% at the end of 2025. This increase is supported by a net investment of ₹2.51 trillion during the quarter. 

Mutual Funds have been bolstered by retail money flowing through systematic investment plans (SIPs), with a net investment of ₹1.42 trillion during the quarter.  

In contrast, FIIs recorded net outflows of ₹1.31 trillion, with a net outflow of ₹1.41 trillion in the secondary market and an inflow of ₹10,019 crore in the primary market. 

Read More: 5 Flexi Cap Funds in Focus: LIC MF, Samco Among Schemes with Over 50% Mid & Small Cap Exposure! 

Sectoral Allocation Changes 

DIIs increased their allocation to the healthcare sector, rising from 6.19% to 6.93% of their total holdings.  

Conversely, they reduced their allocation to the information technology sector from 8.45% to 7.55%.  

FIIs, on the other hand, increased their allocation to commodities from 7.27% to 8.07% while decreasing their stake in financial services from 31.85% to 30.75%. 

Conclusion 

The data indicates a significant shift in the ownership landscape of NSE-listed companies, with MFs and DIIs gaining ground while FIIs' influence wanes. This trend underscores the growing self-reliance of the Indian market. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.