Mutual Funds' Equity Buying Falls to Three-Month Low of ₹43,024 Crore in October

Key Takeaways

• Mutual funds' equity market purchases moderated to ₹43,024 crore in October 2026, the lowest monthly level in three months.
• Cumulative mutual fund equity purchases reached approximately ₹4.7 lakh crore during January–October 2026.
• Equity deployment is influenced by investment flows, portfolio cash levels and asset allocation decisions across equity, hybrid and passive schemes.

Mutual Fund Equity Purchases Moderate in October

Indian mutual funds purchased ₹43,024 crore worth of equities on a net basis in October 2026, marking the industry's lowest monthly deployment in three months.

Despite the moderation, the cumulative amount invested in equities during the first ten months of calendar year 2026 reached approximately ₹4.7 lakh crore.

The figures indicate that domestic mutual funds continued to provide considerable demand for listed equities even as their purchasing activity slowed during October.

Fund deployment remained positive against a backdrop of continuing participation through systematic investment plans and other mutual fund investment channels.

Equity Buying Reaches ₹4.7 Lakh Crore in Ten Months

The January–October cumulative figure is equivalent to ₹4.7 trillion.

For comparison, mutual funds' equity purchases reached approximately ₹5 lakh crore during calendar year 2025, according to the reported industry data.

The 2026 figure was therefore approaching the previous calendar year's level with two months remaining.

However, future deployment will depend on subsequent investor flows, market conditions and fund managers' portfolio decisions.

The October slowdown does not establish whether purchases during November and December will accelerate or decline.

What Determines Mutual Fund Equity Purchases?

Mutual fund participation in the stock market is shaped by more than inflows into actively managed equity schemes.

Hybrid schemes can increase or reduce their equity holdings depending on their investment strategies and permitted allocation ranges.

Passive funds, including index funds and ETFs, also contribute to underlying equity-market demand as their assets and subscription levels change.

Fund managers may additionally adjust cash balances, deploy previously accumulated subscriptions or rebalance portfolios.

These factors can result in differences between the amount invested by mutual funds in equities and the net inflows reported for equity mutual fund schemes.

Domestic Funds Remain Important Market Participants

Domestic mutual funds have become an important source of institutional equity investment alongside foreign portfolio investors, insurance companies and other domestic institutions.

The industry's equity deployment is supported by recurring investment activity, although the relationship between SIP collections and actual equity purchases is not necessarily immediate or one-to-one.

October's ₹43,024 crore figure reflects slower monthly purchases rather than a withdrawal of mutual fund capital from the equity market.

The next monthly fund-flow and investment data releases will provide additional information on whether this moderation continued.