India's stock markets are being supported largely by consistent mutual fund investments, which are preventing a deeper fall despite heavy outflows, according to a report by Jefferies.
The equity mutual funds in the country recorded a strong surge in investor interest in July 2025, with net inflows rising by around 80 per cent month-on-month to touch a record high of Rs 42,672 crore, compared with Rs 23,568 crore in June, data from the Association of Mutual Funds in India
Net equity mutual fund inflows fell sharply by 21.66 per cent month-on-month to Rs 19,013 crore in May 2025, the lowest in a year, despite a rising stock market.
Amid the stock market sell-off, the mutual fund industry in India had a tough February, with a decline of around Rs 3 lakh crore in overall assets under management (AUM).