Domestic equity mutual funds and FPIs power the bull-run in 2021

With China being a problem child for foreign investors, India has made a killing with new issuances

Domestic equity mutual funds (MFs) and foreign portfolio investors (FPIs) continued to support Indian equities in 2021 with a combined net-buying of equities worth Rs 1.09 trillion. Equity MFs extended a bigger hand of support this year, with equities worth Rs 82,341 crore from January to December 22. And FPIs, despite their recent selling, have been net-buyers worth Rs 27,631 crore.

The strong buying by MFs was aided by net inflows of around Rs 71,600 crore in the current calendar year (2021, or CY21). In the first two months of CY21, equity funds had seen net outflows of Rs 13,787 crore,