Indian mutual funds surpass FIIs in assets for first time
What's the story
In a historic development, India's mutual fund industry has overtaken foreign institutional investors (FIIs) in total assets under custody. According to the latest data from the National Securities Depository Limited (NSDL), domestic mutual funds now hold a total of ₹76.41 lakh crore in assets, slightly ahead of FIIs at ₹76.22 lakh crore. This milestone marks a major shift in market dynamics and is largely driven by strong Systematic Investment Plan (SIP) inflows and sustained domestic participation.
Market shift
Mutual funds lag behind FIIs in equity assets
While domestic mutual funds have overtaken FIIs in total assets, the latter still hold a larger share in equity assets. As of June 2026, FII equity assets stood at ₹68.65 lakh crore, down from a peak of around ₹78 lakh crore in September 2024. In contrast, mutual funds' equity assets have surged by an impressive 23.3% during the same period to reach ₹54.5 lakh crore from ₹44.2 lakh crore earlier.
Ownership shift
Domestic MFs gain market share at FIIs's expense
The ownership shift is even more visible in the market share. As of March 31, 2026, domestic mutual funds' share hit an all-time high of 11.46%, up from 11.1% on December 31, 2025. This marks the 11th consecutive quarter of growth for domestic mutual funds. Meanwhile, FIIs's share fell to a 14-year low of 16.13%, down from last quarter's figure of 16.6%.
Debt dominance
Mutual funds target ₹150 lakh crore AUM by 2030
In terms of debt assets under custody, mutual funds dominate with ₹16.98 lakh crore, more than double that of FIIs at ₹6.82 lakh crore across various routes. This highlights the growing role of domestic institutions in India's fixed-income market. The mutual fund industry is now targeting an ambitious asset under management (AUM) goal of ₹150 lakh crore by 2030, riding high on the success of SIPs and expanding its investor base significantly by 2030.