Mutual funds were consistent buyers in the equity market throughout last month except for two days when they pulled out ₹2,473 crore, according to data sourced from SEBI.
Riding on the steady rise in inflows, mutual funds have more than doubled their net equity investment to ₹43,465 crore last month against ₹20,718 crore logged in October.
In fact, MFs were consistent buyers in the equity market throughout last month except for two days when they pulled out ₹2,473 crore, according to data sourced from SEBI.
The consistent buying by MFs boosted market sentiment and pushed the bellwether Nifty and Sensex indices up last month. Sensex gained 1,729 points or 2 per cent to 85,707 points against 83,978 on November 3. In the same period, Nifty was up 440 points to 26,203 points from 25,763 points. MFs were net sellers in debt at ₹72,201 crore against ₹12,771 crore.
On the other hand, foreign portfolio investors (FPI) have pulled out ₹3,765 crore last month against a net investment of ₹14,610 crore in October, according to NSDL data.
Nirav Karkera, Head of Research, Fisdom, said while retail flows have been resilient over the past couple of quarters, some valuation froth has been cleared in several pockets of the listed universe with macro and earnings outlook indicating renewed optimism.
The IPO market has also picked up pace which has not just added meaningfully large companies with distinct and strong businesses to the listed universe but also the opportunity to participate in strong growth stories in the making, he added.
The ongoing calendar year marks the fifth consecutive year of positive equity flows from MFs. The steady run of inflows in recent years has been supported by retail participation through Systematic Investment Plan (SIP).
As per anecdotal evidence shared by the Association of Mutual Funds in India, over 95 per cent of SIP are into equity-oriented schemes.
Nilesh Shah, Managing Director, Kotak Mahindra AMC, said the inflows through SIP will continue given the positive experience of investors and expected revival of corporate earning next year.
Stoppage of SIP account for about 5 per cent of outstanding SIP accounts as the tenure of existing SIP comes to an end, he said.
Archit Doshi, Senior Vice President, Prabhudas Lilladher AMC, said about 40 per cent of funds delivered SIP returns exceeding 15 per cent in last one year, while 39 per cent generated returns between 10-15 per cent, resulting in a market-wide validation of investment through SIP.
While stoppages of SIP make headlines, inflows have jumped 12 per cent to a new high of ₹29,529 crore in October from ₹26,400 crore in January, he added.
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Published on December 6, 2025