For the first time, domestic institutions in India have overtaken foreign portfolio investors (FPIs) in holding equity assets. As of July 2025, Indian mutual funds and insurance companies together held Rs 72.67 lakh crore in equities, slightly higher than the Rs 71.96 lakh crore held by FPIs.
Over the past year, foreign portfolio investment assets declined by Rs 2.6 lakh crore, while domestic institutions increased their holdings by Rs 4.17 lakh crore. The growth was mainly driven by mutual funds, which saw their assets rise by Rs 5.13 lakh crore. In contrast, insurance companies experienced a decrease of Rs 96,567 crore in their equity holdings.
Retail investors also contributed significantly to the growth through continued investments in equity mutual funds and insurance policies. Systematic Investment Plans (SIPs) reached record levels, with gross monthly flows of Rs 28,464 crore and total inflows of Rs 2.89 lakh crore for the financial year 2025.
July alone witnessed strong net inflows, with Rs 42,702 crore flowing into equity growth schemes and Rs 20,879.5 crore into hybrid schemes. Additionally, assets under management in SIPs grew from Rs 13.09 lakh crore to Rs 15.19 lakh crore compared to the previous year.
The 2025 budget’s tax incentives provided salaried employees with an extra Rs 9,000 crore in disposable income, which supported the sustained growth in SIP investments.
