Domestic Mutual Funds Hit Record Ownership in Q2 as FPIs Reduce Holdings

Mumbai, November 20, 2025:
Domestic Mutual Funds (DMFs) reached their highest-ever ownership levels in Indian equities during the second quarter, marking a major shift in market participation patterns. Strong SIP inflows, growing retail investor confidence, and sustained domestic liquidity helped mutual funds increase their share even as global uncertainties persisted.

In contrast, Foreign Portfolio Investors (FPIs) trimmed their exposure amid geopolitical concerns and shifting global rate cycles. Market analysts say this divergence highlights the increasing strength of domestic capital and signals a long-term structural shift where local investors are becoming the primary drivers of India’s equity markets.