Indian Investors Pump ₹18 Lakh Cr into Markets, 7x More Than FPIs

Domestic investors have taken the lead in shaping India’s capital markets over the past six years, according to Ananth Narayan, Whole-Time Member at SEBI. Between April 2019 and June 2025, Indian investors poured over ₹18 lakh crore (about $210 billion) into the markets—more than seven times the $29 billion brought in by foreign portfolio investors (FPIs) during the same period.

Narayan shared these insights at the International Conference on Financial Planning, noting how this domestic surge is reshaping the market landscape. He also highlighted the important role that certified financial planners must play in helping investors make informed decisions. SEBI, he added, is working to build trust and stability as the market continues to grow.

Retail Investment Sees Big Jump

The number of individual investors in India has grown sharply—from 4.2 crore in March 2020 to around 13 crores by mid-2025. While this is a strong step forward, Narayan believes there’s still more ground to cover. With higher participation comes the responsibility to safeguard investor trust, particularly in areas vulnerable to manipulation. Ensuring fair play, he stressed, is a shared responsibility among SEBI, exchanges, depositories, and all key stakeholders.

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Record Mutual Fund Inflows Fuel Primary Market Activity

In the last financial year alone, Indian savers invested a record ₹6.1 lakh crore into equity-focused mutual funds. This strong and steady demand made it easier for companies to raise capital, with ₹4.6 lakh crore mobilised through IPOs, FPOs, rights issues, QIPs, and other methods. Narayan called this healthy mix of demand and supply a clear sign of market maturity.

He pointed out that retail investors in such mutual funds saw an average annual return of 15.5% over six years—reflecting both investor confidence and market resilience.

AIFs Expand Rapidly, FPIs Still Vital

Alternate Investment Funds (AIFs), which cater to high-net-worth investors looking at unlisted opportunities, have also seen steady expansion. By March 2025, commitments in AIFs had climbed to ₹13.5 lakh crore—a ₹1.7 lakh crore jump in a single year. These funds have grown at a 30% annual pace over five years.

Although domestic investors are making deeper inroads, Narayan acknowledged that FPIs remain a key part of the Indian markets. As of June 2025, FPIs held assets worth ₹74 lakh crore (over $860 billion). Over the past 30 years, their dollar-based returns have averaged above 10% annually—demonstrating their long-term stake in India's growth story.

Conclusion

The rise in domestic investment points to a fundamental shift in India’s financial landscape. With more individual investors, rising mutual fund participation, and growing AIF activity, Indian money is driving the markets forward. As regulators aim to strengthen transparency and trust, the foundation for long-term, inclusive growth appears stronger than ever.