Mutual Fund Ownership of NSE-Listed Companies Hits Record 11.82%

Key Takeaways

• Mutual funds raised their ownership of NSE-listed companies to a record 11.82% at the end of September 2026.
• Mutual fund ownership increased from 11.58% in the previous quarter, marking the 13th consecutive quarterly rise.
• FII ownership declined to a 14-year low of 15.57%, narrowing the gap with domestic mutual funds to 3.75 percentage points.

Domestic mutual funds increased their share of Indian listed companies to another record during the September 2026 quarter, extending a multi-quarter rise in institutional ownership.

Mutual funds held 11.82% of companies listed on the National Stock Exchange as of September 30, according to PRIME Database data. Their share was 11.58% at the end of June, making September the 13th consecutive quarter in which mutual fund ownership increased.

The rise came alongside a further decline in foreign institutional investor ownership. The combined share of foreign institutional investors fell to 15.57%, its lowest level in 14 years, from 15.91% three months earlier.

That brought the difference between mutual fund and foreign institutional ownership down to 3.75 percentage points. The gap has been narrowing as domestic fund houses receive continuing investments from household investors and deploy those flows into listed equities.

Mutual funds invested about ₹1.22 lakh crore on a net basis during the September quarter, according to the data cited in the reports.

The ownership figures form part of a broader shift in the composition of India's equity market. Private promoters also increased their stake during the quarter, with promoter ownership in private-sector NSE-listed companies rising to 41.93%, a three-year high.

Foreign investors, by contrast, continued to reduce their proportional ownership even though they remain ahead of domestic mutual funds in aggregate shareholding.

The mutual fund figure is particularly relevant because it measures actual ownership of listed companies rather than just changes in assets under management. Rising equity-market values can increase mutual fund AUM without necessarily indicating additional purchases, whereas ownership data shows how much of listed India is held by the industry.

The September quarter therefore extended a longer-running increase in the role played by domestic mutual funds in India's listed equity market, supported by regular retail flows into equity-oriented schemes and systematic investment plans.