Mutual Funds Power Indian Equities in 2025, Outpace FII Selling

• Mutual funds invested over ₹3.22 lakh crore in equities during 2025.
• Foreign Institutional Investors (FIIs) recorded net selling of ₹1.58 lakh crore in the Indian market.
• Domestic mutual funds significantly boosted the market despite FII outflows.
• Mutual funds also deployed approximately ₹23,000 crore into Initial Public Offerings (IPOs).

Why It Matters: Domestic mutual funds drove Indian equity markets in 2025, offsetting FII selling pressure.