New Delhi, Jan 7 (IANS) India’s top domestic institutional investors reported a 12 per cent to 20 per cent surge in assets across multiple segments during 2025, underscoring continued local support for equity and debt markets even as foreign investor assets growth softened.

Mutual funds led the expansion, with equity assets up 20.6 per cent to Rs 52.25 lakh crore from Rs 43.34 lakh crore a year earlier, and their combined equity and debt assets climbed 23.34 per cent to Rs 73.21 lakh crore from Rs 59.35 lakh crore, as per data.

Mutual funds bought about Rs 4.88 lakh crore of Indian equities in 2025, versus Rs 4.3 lakh crore a year earlier, the data showed.

Insurance companies and domestic pension funds also saw their equity assets rising with the former witnessing a 12.6 per cent surge to Rs 26.81 lakh crore and latter posting 66 per cent jump to Rs 4.38 lakh crore. Collectively they bought more than Rs 1.4 lakh crore of Indian equities during the year.

Their combined equity and debt assets jumped 12 per cent and 20 per cent, respectively to Rs 45.89 lakh crore and Rs 16.32 lakh crore, driven by continued investments and regulatory flexibility. Pension regulator allowed higher equity limits for tier 2 and 3 assets and the insurance regulator permitted measured equity allocations within prudential limits.

Alternate investment funds and banks saw equity assets surge 37 per cent and 33 per cent, respectively, while their combined equity and debt assets rose 23 per cent and 25 per cent.

Analysts said that AIFs increasing asset base in India indicate high-net-worth investors and family offices using focused, rules-based strategies aimed at generating outperformance.

By contrast, foreign portfolio investor equity allocations increased just 4.3 per cent during the year to Rs 74.26 lakh crore. Their total equity cum debt exposure rose just 4.8 per cent to Rs 81.4 lakh crore. Foreign institutional investors (FIIs) net sold Rs 1.66 lakh crore in 2025 amid stretched valuations, increasing geopolitical concerns, and tariff hikes on Indian goods.

—IANS

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