Mutual funds' net equity purchases surged 13% in 2025, shows data

Mutual funds pumped a record ₹4.9 trillion into equities in 2025, driven by strong SIP inflows and retail participation despite volatile markets

Mutual funds’ (MFs’) net equity purchases rose 13 per cent in 2025, touching a record ₹4.9 trillion as of December 30, data from the Securities and Exchange Board of India (Sebi) shows. This surpasses the previous high of ₹4.3 trillion recorded in 2024. 

The increase comes despite a subdued equity market. Net equity purchases by MFs have remained positive for the fifth consecutive year. 

MF equity buying has risen sharply over the past few years. After net purchases of ₹1.7 trillion in 2023 and ₹1.9 trillion in 2022, MF investments more than doubled in 2024 before scaling a new peak in 2025. 

Market participants attribute the steady MF buying to sustained inflows into MF schemes, even as market volatility remained elevated. Strong retail participation and continued contributions through systematic investment plans (SIPs) have supported MF flows through the year. 

The strong MF flows have been key to the equity market performance so far, especially given the FPI selling. Domestic institutional investors (DIIs), which include domestic MFs, insurance companies, pension funds among others, have put in over ₹7 trillion into the equity market. 

The continued MF buying has pushed the equity holding of MFs to over ₹50 trillion for the first time. At the end of October, equity assets stood at ₹50.6 trillion, doubling in a little over two years, shows data from Prime Database.