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How Mutual Fund Success Has Fueled India’s Stock Market Demand
Many people in India began investing in mutual funds through regular payments called SIPs.
A popular “Sahi Hai” campaign helped make this kind of investing attractive.
Mutual funds then collected very large amounts of money.
Much of that money was used to buy shares in companies.
This increased demand for stocks.
Higher demand helped stock prices rise and stay high.
As prices rose, investing in stocks looked even more attractive to people.
The article says SIPs may have become victims of their own success because their popularity helped make the market more expensive.
The “Sahi Hai” mutual fund campaign helped drive large sums into systematic investment plans (SIPs).
These inflows significantly increased Indian demand for stocks and helped push up and sustain prices.
Equity mutual fund folios rose from 63 million in March 2020 to 123 million in March 2024.
The number of equity mutual fund folios reached 183 million by March 2026.
Net equity mutual fund inflows peaked at ₹4.2 trillion in 2024–25 and totaled ₹3.5 trillion in 2025–26, with much of the money coming through SIPs.
- Who
- Indian mutual fund investors, particularly people using SIPs.
- What
- A surge in equity mutual fund investment increased demand for stocks and helped sustain higher prices.
- Where
- India.
- When
- Equity mutual fund folios rose between March 2020 and March 2026; inflows peaked in 2024–25 and remained high in 2025–26.
- Why
- Large mutual fund inflows, much of them through SIPs, increased demand for stocks; rising prices then made stock investing more attractive.
Key facts
- Equity MF folios, March 2020
- 63 million
- Equity MF folios, March 2024
- 123 million
- Equity MF folios, March 2026
- 183 million
- Peak net equity MF inflows
- ₹4.2 trillion in 2024–25
- Net equity MF inflows
- ₹3.5 trillion in 2025–26
- Main investment channel mentioned
- Systematic investment plans (SIPs)










