Mutual Funds to break all records? Rs 4 Lakh crore already invested in equity—how far is Rs 5 lakh crore?

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Mutual funds in India are on track to make record equity purchases this year, with net buying likely to cross Rs 5 lakh crore for the first time, says Zee Business Research.

Already Rs 4 lakh crore invested

By October 2025, mutual funds have already invested over Rs 4 lakh crore in equities. At this pace, total investments could reach Rs 5 lakh crore by the end of the year. This would be the fifth year in a row of positive equity inflows into domestic mutual funds.

Strong growth compared to last year

In 2024, mutual funds had invested around Rs 4.3 lakh crore in equities. The rising inflows show growing confidence of Indian investors in the stock market, even as foreign investors (FPIs) pulled out Rs 1.6 lakh crore this year.

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SIPs remain the main driver

Systematic Investment Plans (SIPs) continue to be the backbone of retail participation, contributing nearly Rs 2.2 lakh crore to total inflows so far in 2025.

Monthly inflows show steady interest

Mutual funds have seen strong inflows throughout the year:

January – Rs 57,644 crore

February – Rs 47,934 crore

March – Rs 12,141 crore

April – Rs 17,043 crore

May – Rs 57,088 crore

June – Rs 43,495 crore

July – Rs 47,019 crore

August – Rs 70,534 crore

September – Rs 46,442 crore

October (so far) – Rs 2,845 crore

Domestic money keeps markets steady

Even as FPIs sold equities, domestic mutual funds absorbed the selling pressure, helping markets stay stable. The consistent inflows show that Indian investors, both retail and institutional, are playing a big role in driving the equity rally.

If this trend continues, 2025 could become a landmark year for mutual funds, setting a new record for equity investments and highlighting the growing power of domestic capital in India’s stock markets.