Mutual Funds Join More IPOs but Invest Less

Mutual funds are still buying shares in many new companies that enter the stock market.

In 2026, they joined more IPOs than they did in 2025.

However, they invested less money in each IPO.

This suggests that fund managers are being more careful about how much they buy.

IPOs were also generally smaller this year.

Some IPOs gave strong gains after listing, but short-term returns after 30 days were weaker than last year.

Samir Arora has suggested that mutual funds avoid IPOs for 30 days because too many new shares may pressure the market.

The data instead show that funds are participating, but with smaller commitments.

Larger upcoming IPOs could change the final numbers for 2026.