Archive · 18 Jul 2026
Record Mutual Fund Inflows Not Boosting NAVs in India
In India, lots of money is being invested in mutual funds, but the value of these funds isn't going up as much as expected.
This is because the money is being used to buy new shares from companies and to replace money that foreign investors are taking out.
So, even though there's a lot of money coming in, it's not making the existing stocks more expensive.
Instead, it's helping the market stay stable.
Investors should know that just because a lot of money is coming in doesn't mean the value of their funds will go up quickly.
The market's performance will depend more on how well companies are doing rather than just the amount of money coming in.
Record inflows into Indian mutual funds are not boosting NAVs due to absorption by IPOs and FII exits.
Domestic institutional investors have deployed over ₹18 lakh crore into the equity market since 2024.
Companies have raised ₹13.2 lakh crore through IPOs, QIPs, OFSs, and other equity issuances since 2024.
Foreign institutional investors have pulled out ₹4.3 lakh crore from Indian equities since 2024.
Mutual fund managers are deploying cash aggressively, with cash holdings at their lowest levels since 2020.
- Who
- Domestic institutional investors and mutual fund managers in India
- What
- Record inflows into mutual funds not translating into higher NAVs due to absorption by IPOs and FII exits
- When
- Since 2024, with specific data for June 2024
- Where
- Indian equity market
- Why
- Domestic liquidity is being used to finance new equity supply and replace exiting foreign investors, rather than bidding up prices of existing stocks
- Domestic institutional inflows (since 2024)
- ₹18 lakh crore+
- Equity fundraising by companies (since 2024)
- ₹13.2 lakh crore through IPOs, QIPs, OFSs, and other issuances
- FII outflows (since 2024)
- ₹4.3 lakh crore
- Equity mutual fund inflows (June)
- ₹29,282 crore
- Mid-cap fund inflows (June)
- ₹6,090 crore (second-highest monthly inflow on record)
- Small-cap fund inflows (June)
- ₹5,602 crore (above one-year average)
- ETF inflows (June)
- ₹2,600 crore into PSU Bank ETFs (record inflow)
- Active equity fund cash level
- 4.3% of assets (lowest since February 2022)