Indian mutual funds hold 11.7% vs FPIs below 14% Sept
Business
Indian mutual funds now own almost as much of the stock market as foreign portfolio investors (FPIs).
As of September 2026, mutual funds held 11.7% of domestic equities, while FPIs dropped below 14%.
In May 2021, FPIs had a big lead, holding 20% compared to mutual funds' 7%.
This shift shows how local investors are stepping up as FPIs pull back.
DIIs overtake FPIs in Nifty 500
Domestic institutional investors have even overtaken FPIs in Nifty 500 companies, with DIIs holding a 21% stake and FPIs 17%.
Meanwhile, FPI investments hit the lowest since March 2026 after record selling, with their focus moving away from banks and IT toward capital goods and healthcare.
The landscape is clearly changing, with Indian investors playing a bigger role than ever.