New Delhi, Nov 10 – Indian mutual funds poured more than ₹8 752 crore into newly listed companies in the second quarter of FY 26 (ended September 2025). Most of these fresh listings are small‑cap firms, showing investors a clear appetite for growth‑oriented businesses.
In the same period, equity mutual fund schemes drew ₹106 554 crore in inflows, up sharply from ₹66 869 crore in the first quarter. Debt schemes flipped to a net outflow of ₹3 156 crore, compared with a ₹201 516 crore inflow the month before. Hybrid funds still attracted money, pulling in ₹45 570 crore, a slight dip from the ₹58 235 crore they saw last quarter.
Investor behaviour also shifted: monthly systematic investment plans (SIPs) hit a record ₹29 361 crore by September, topping the ₹27 269 crore seen in June. These figures underline the industry’s focus on smaller, scalable businesses that could offer strong long‑term returns.
Market indices mirrored the pullback. The Nifty‑50 fell 3.6 % in the July‑September quarter, after jumping 8.5 % the month before. The BSE Midcap and Small‑Cap indices slipped 4.1 % and 4.6 % respectively, compared with gains of 12.8 % and 17.3 % in the earlier quarter.
Foreign institutional investors (FIIs) were net sellers in equity markets, withdrawing ₹76.62 billion in September. Domestic institutional investors (DIIs) remained buyers, adding ₹221.11 billion – a rise from the ₹141.62 billion they supplied in the first quarter. From April to September 2025, FIIs saw net outflows of ₹37.9 billion while DIIs pumped in ₹362.7 billion, a stark contrast to the previous year when FIIs added ₹89.7 billion and DIIs invested ₹232.4 billion.
These numbers paint a clear picture: Indian mutual funds are tightening their focus on small‑cap growth sectors, while institutional investors balance buying and selling based on market conditions. As the economy moves into the next quarter, watching how these patterns evolve will be key for investors and policymakers alike.
Source: ianslive
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