India’s leading domestic institutional investors experienced a notable increase in assets ranging from 12% to 20% across various segments in 2025. Mutual funds spearheaded this growth, with equity assets rising by 20.6% to Rs 52.25 lakh crore compared to the previous year. The combined equity and debt assets of mutual funds also surged by 23.34% to Rs 73.21 lakh crore.
Insurance companies and domestic pension funds witnessed a rise in equity assets, with insurance companies marking a 12.6% increase to Rs 26.81 lakh crore and pension funds showing a significant 66% jump to Rs 4.38 lakh crore. Together, they invested over Rs 1.4 lakh crore in Indian equities during the year. The collective equity and debt assets of these entities saw a respective 12% and 20% increase to Rs 45.89 lakh crore and Rs 16.32 lakh crore, driven by sustained investments and regulatory flexibility.
Meanwhile, alternate investment funds (AIFs) and banks observed a surge in equity assets by 37% and 33%, respectively, with their combined equity and debt assets also rising by 23% and 25%. Analysts suggest that the growth in AIFs’ asset base in India reflects high-net-worth investors and family offices utilizing focused, rules-based strategies to achieve outperformance.
In contrast, foreign portfolio investors saw a modest 4.3% increase in equity allocations to Rs 74.26 lakh crore in 2025. Their total equity cum debt exposure rose by 4.8% to Rs 81.4 lakh crore. Foreign institutional investors (FIIs) net sold Rs 1.66 lakh crore during the year, citing stretched valuations, escalating geopolitical concerns, and tariff hikes on Indian goods.
