Domestic Mutual Funds’ Holding in NSE-LIND Companies has surpassed owners in mid-and small-caps by the direct retail category.
Mutual Funds’ Share as a Percentage of the Total Market Capitalization of the Companies Listed on the National Stock Exchange (NSE) Stood at A Record High 10.4% in the Quarter Ended March 2025, Surpassing the 9.5% Individual Investors Who Trade Directly, According to Nse’s India Ownership Tracker Report.
Record inflows
These funds infused 1.9 Trillion Into Equites in Q4 of Fy25, Taking Total Net Inflows to 6.1 trillion for the year, the highest for any fiscal to date.
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“In Value Terms, DMF (Domestic Mutual Fund) Holdings Stood at 42.4 trillion, down just 2.4% quoq, despite a larger drop in the overall market cap, reflecting sustained Net equity purchases, “The report said, adding that the strong momentum was” Driven in Part ” Retail Participation Through Systematic Investment Plans (SIPS).
Individual holding in nse-listed companies declined by 30 Basis points sequentially to a service-Quarter low of 9.5% in January-March, LED by Reduced Share in Mid-Mid-Mid- and Small-CAPANISAASAUNE That Saw Agrassive Buying by individuals over the past few years, according to the report.
“In Value terms, individual holding in nse-listed companies fell by 9.2% Qoq to 38.9 trillion – Exceed the overall drop in Market Cap – Indicating Subdued Retail Activity and Elevated Market Volativity and Uncertyy, “The tracker showed.
Market Veterans Expect the trend to continue, giving
“We have Seen Market Volativity Between October Last Year and 7 April, which has Singed Direct Retail,” said bhopkumar, managing director and chiff executable office at Axis mutual Fund. “This trend in holding will wear in favor of mutual funds as some individual investors who have been hit by losses in any cycle tend to return through the mf route.”
Mutual Fund Inflows are expected to remain buoyant, said analysts.
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“With the investment Environment Turning more favorite, mutual funds are likely to Gain Further Strength,” Said Nirav Karakera, Head of Research at Wealth-Tech Platform Fisdom. “Positive Equity Outlook and A Gradually Emerging Risk-On Sentiment are expected to drive continued interest from retail investors.”
The total market cap of the listed universe fell to 408.9 trillion as of March from 436.6 trillion as of December.