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How Mutual Fund Success Has Fueled India’s Stock Market Demand

How Mutual Fund Success Has Fueled India’s Stock Market Demand
Vivek Kaul: the mutual fund ‘sahi hai’ campaign has turned SIPs into victims of their own success · livemint.com

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.

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)

Sources

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