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MFs' equity purchases scale a new high in 2025 amid strong inflows

Domestic funds have bought Rs 4.6 trillion worth of equities so far, surpassing 2024 highs

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The strong MF flows have been key to the equity market performance so far, especially given the FPI selling. | Illustration: Binay Sinha

Abhishek Kumar Mumbai

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Mutual funds’ (MFs’) net equity investments have touched ₹4.6 trillion so far in 2025, the highest ever for any year, surpassing the previous record set in 2024.
 
This is the fifth consecutive year of positive flows into the equity market from MFs.
 
The growing pace of MF investments, which has come on the back of strong flows from investors into MF schemes, has sustained despite a subdued market backdrop and persistent selling by foreign portfolio investors (FPIs). FPIs have withdrawn ₹1.4 trillion from domestic equities.
 
“MFs and domestic investors alike have been a major force in the market in recent